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Infra, cement cos feel pinch of falling rupee, realty counts on more sales

Despite rise in interest rates and property prices, momentum in housing demand expected to stay, say developers; infra, cement companies remain circumspect


Managing borrowing costs, though, will continue to be a challenge for companies because of higher interest expenses on loans in the short to medium term, said experts.

Viveat Susan PintoRaghavendra KamathRam Prasad Sahu Mumbai
At its recent fourth quarter results conference, the Larsen & Toubro (L&T) management admitted that volatility in the price of crude oil and other commodities arising from geopolitical uncertainties was pushing up input prices.

But there is another elephant in the room.

The rupee has been falling fast against the dollar, putting further pressure on commodity prices and forcing the central bank to intervene.

Last week, the Reserve Bank of India increased the repo rate, pushing up the borrowing cost for companies and consumers. In the last month, the rupee has depreciated nearly 2 per cent against the dollar; since the end of

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First Published: May 19 2022 | 6:10 AM IST

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