Falling rupee may impact chemical, agrochem sector: Top 8 stocks that can fetch 10-40% return
The rupee depreciation year-to-date and in last, one month was so sharp that net importers of commodities are likely to hit badly as they have to shell out more money to buy their products. Rupee depreciation is likely to hit badly net importers of commodities as they have to pay more to buy raw material or finished products. On the contrary, exporters will definitely be major beneficiaries. More the exposure to imports, severe the impact of rupee fall. One of the sectors that may be impacted is chemicals and agrochemicals, but IIFL feels the impact will not be the same for all. While exporters can pass on to customers the cost advantage of rupee fall, in case of importers which can't pass on import cost, the pressure can likely go beyond FY19. The research house said FY19 earnings are likely to be clouded by hedging losses and debt revaluation, so it focuses on earnings for FY20, by when the recurring impact on earnings should become more visible. According to th...