Stronger rupee to further hit exports: Goldman SachsMay 25th, 2009 - 1:42 pm ICT by IANS
New Delhi, May 25 (IANS) Already hit by a sluggish offshore market, export-dependent sectors such as information technology (IT), textiles, pharmaceuticals and export-oriented oil refiners will now likely be hit by the appreciation of the Indian rupee, says global investment bank Goldman Sachs.
“We expect the Indian rupee to appreciate further from current levels as the stable government and relatively resilient domestic demand becomes a key catalyst for foreign inflows,” said Goldman Sachs economist Tushar Poddar Monday.
However, according to Goldman Sachs, with the Indian currency strengthening, sectors reliant on imports are expected to gain.
“Oil distribution, fertilizer and capital goods companies are amongst the largest importers and are likely to benefit from a stronger Indian rupee. On the other hand, IT, textiles, pharmaceutical, and export-oriented oil refining are likely to be hit by a strong Indian rupee,” Poddar said.
Following the unexpected margin of victory for the Congress-led coalition government, the rupee has appreciated nearly 5 percent against the US dollar.
Poddar said deleveraging pressures would ease further and that the basic balance of payments would turns positive in 2009-10 due to narrowing trade deficit.
- 2012 not to be a shining year for Indian gems and jewellery - May 09, 2012
- RBI intervenes as rupee slides to new low (Roundup) - Dec 15, 2011
- Rupee hits new low for third straight session (Roundup) - Dec 14, 2011
- Exporters expect demand to pick up, wary of currency fluctuations - Oct 24, 2010
- India to recover in second half of 2009-10: Goldman Sachs - May 04, 2009
- 'Karnataka SEZ changing socio-economic landscape' - Oct 24, 2010
- Mixed implications seen on India due to US ratings downgrade - Aug 09, 2011
- India to grow at 8 percent next fiscal: Goldman Sachs - Dec 04, 2009
- India's industrial output up 7.8 percent in June (Lead) - Aug 12, 2009
- India's 8.9 percent July-September growth beats forecasts (Roundup) - Nov 30, 2010
- India-Peru to enhance economic cooperation: Anand Sharma - Jan 17, 2011
- India's exports rise by 3.23 percent in April - Jun 01, 2012
- Exporters worried over foreign fund inflow - Oct 17, 2010
- India seeks Mauritius investment in key sectors - Feb 07, 2012
- Rupee rebounds as new RBI norms check volatility - Dec 16, 2011
Tags: balance of payments, capital goods, catalyst, coalition government, economist, fertilizer, global investment bank, goldman sachs, importers, indian currency, indian rupee, margin of victory, New Delhi, offshore market, oil distribution, oil refiners, oil refining, poddar, stable government, trade deficit