what is the effect of falling dollar on business and in turn stock market

It has an -ve Impact on the earning coeff of NRI's...!!!!!:)

Yes certainly falling dollar will impact business. If $ depreciates against rupee means rupee appreciates against $. Appreciation of rupee will give negative impact on exports as it makes product costlier. However appreciation of rupee encourages import as importer has to pay less rupee for the same product they were paying earlier.

However I feel appreciation of rupee will increase ouflow of short term investments. FII in cash appreciated rupee by way of taking more $ to home however I think long term investor will wait and see further movement of $ and stock market.

For countries like India, fall in Dollar value is a good sign. It will definitely raise the strength of Indian Rupees. Reduction in Imports and increase in Exports will happen.

It can impact the Stock Market, it will rise faster in countries where the currency is depreciating than where it is appreciating. Imports will drop and exports pickup till the balance is reversed in the direction of the currency. It can be inlationary in countries where the currency depreciates because imported materials used in manufactured goods tend to rise along with energy costs.