So what are the implication of the USD/INR with the following:
UP Move Above 46-47 area is
1.Bad for the equities as we will have intense sell off in the Indian markets
2.Good for services
3.Good for Export sectors
4. Benefits manufacturing sectors and also most of logistic co.
Smart money is chasing the growth which is conversely, If the move happens in other direction then we will see a wave of defaults and bankruptcies in the export and manufacturing sectors espl med cap areas. Good for equities only for certain degree of rupee appreciation but when you look the fundamentals of the markets going forward in future quaters then it will hurt and market tanks based on higher inflation numbers.Moderate inflation is always good for the economy but if you see the commodities they are growing in double digits which will faulter the economy and there is much overdue correction in those sectors.
