Defty is one component which helps one get an advanced cue for Indian stock market likely prevailing trend in the market. Keeping the suspense away the component is called as Defty and same is a combination of Nifty and Currency fluctuation which is measured against dollars.
DEFTY = Nifty + Currency (INR-USD)
DEFTY is performance of Nifty and same is measured in dollars.
This component is important to FIIs as they are always looking at returns in comparison with dollar fluctuation and they are keeping an eye on it come to know what currency fluctuation is doing to their investments.
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