Foreign Investors cut their holdings. What is the reason?

Foreign Investors cut their holdings .
Brokers said Foreign Investors cut their holdings as Rupee depreciates. While domestic investors too are rushing to the exit to pre- empt a large scale selling. FII have sold equities worth of 3500 crore rupee in the last five trading session.

According to brokrage house stocks with more than 20% holding like V-Mart Retail, Adani Transmission, Mannapuram Finance etc dropped between 10-20% since the beginning of September.

Broader market valuation are back at 10 years highs, despite the 10% long term Capital gain tax imposed on equity. But in the long run its just a sort term hardle that market faced now.