Depreciation in rupee against dollar may boost Nifty50 firms' earnings

Dalal Street expects more upsides from the depreciation in the rupee against the dollar than downsides. Edelweiss Securities, for example, expects a weaker rupee to aid corporate earnings through it positive impact on export intensive sectors such as information technology services, pharmaceuticals and commodity producers such as metal and mining, and oil and gas companies. “Ten per cent depreciation in rupee boosts Nifty50 companies’ combined earnings per share (EPS) by 3-4 per cent (ceteris paribus). However, this has not played out perfectly historically,” a recent r.....

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