Due to the continued slump of the rupee, the local markets of India have been experiencing a lot of pressure. According to recent reports, the nation is one of the worst performing economies in Asia - a blow to a country previously predicted to rise among the Asian powerhouses.

According to Raamdeo Agrawal, co-founder and director of Motilal Oswal Financial Services, "If the rupee problem gets sorted out, a lot of things will start stabilizing, like the diesel price, the behavior of the FIIs, how to look at the economy, and what will be the new parity for the exporters and importers."

Analysts are looking forward for a bull market, which they say will only occur once Nifty moves towards 6350, followed by a breakout in the following months. Furthermore, they said that the key to survival is volatility.

Investors in the region have been anticipating the United States' Federal Reserve's next move regarding its bond purchasing strategies. Foreign investors have exited the Indian market in the past months, amounting to a loss of about US$754 million.