Currency rates and its impact on Stock Market
Lets discuss here how can Indian Rupee can change the price valuations of different stocks in different sectors. A weakening rupee against dollar has its own pros and cons for different businesses in india especially those tied to imports and exports. Export Sectors : Sectors like IT and Pharma, which earn highly through exports mostly USD often benefit when the rupee falls. Why? Because they get more rupees per dollar earned, increasing their revenue and profit margins. At MHV Education, the Stock Market Trading Course for Beginners covers all these topics in detail both theoretically and practically. Investors look for these sectors as IT giants and pharmaceutical exporters experience higher earnings without increasing output due to these currency movements. Import Dependent sectors: On the other side the sectors which are highly dependent on imports such as oil, aviation, chemicals, and fertilizers — take a hit. A weaker rupee makes raw materials costlier for them decreasing...