Why Indian markets fall when rupee depreciates with dollar? Is it because it's bad for imports but good for exports?

General
1

Why Indian markets fall when rupee depreciates with dollar? It is definitely not good for importers but good for exporters. Even many countries purposefully depreciate their currencies to get edge for their Exports.

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2

Ananth you answered it yourself! A depreciating currency is bad for a country that is a net importer. India is a net importer...these are the trade data for India..

Exports - USD 300,570 Million

Imports - USD 491,487 Million

Balance of Trade - USD 190,916 Million.

So, as you can see majority of the trade is in Imports. Hence a depreciating Rupee is bad for the Indian economy...and anything bad for the economy is bad for the Markets! 

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3

Then with cheap currency can we give boost to our exports thus can turn ours in to net export oriented?

4

True, for that we need good quality stuff to export which unfortunately India does not have. Majority of our exports are not products but services. (you may be interested to know that nearly 56% of Indian GDP is from Services.).