The INR has depreciated over 10% against the USD and 11% against the Euro since May 2, 2013. This sharp depreciation will significantly impact company earnings in different sectors. IT services and pharma sectors are expected to benefit the most, while consumer, energy, and automotive sectors may see negative impacts. For IT services, earnings upgrades of 47% are estimated for coverage companies based on revised exchange rate estimates. Gas companies' earnings may see downgrades of 38% due to higher costs. The note will not revise preferred stock picks until the currency stabilizes.
The INR has depreciated over 10% against the USD and 11% against the Euro since May 2, 2013. This sharp depreciation will significantly impact company earnings in different sectors. IT services and pharma sectors are expected to benefit the most, while consumer, energy, and automotive sectors may see negative impacts. For IT services, earnings upgrades of 47% are estimated for coverage companies based on revised exchange rate estimates. Gas companies' earnings may see downgrades of 38% due to higher costs. The note will not revise preferred stock picks until the currency stabilizes.
The INR has depreciated over 10% against the USD and 11% against the Euro since May 2, 2013. This sharp depreciation will significantly impact company earnings in different sectors. IT services and pharma sectors are expected to benefit the most, while consumer, energy, and automotive sectors may see negative impacts. For IT services, earnings upgrades of 47% are estimated for coverage companies based on revised exchange rate estimates. Gas companies' earnings may see downgrades of 38% due to higher costs. The note will not revise preferred stock picks until the currency stabilizes.