Adani Enterp. 2553.00↑56.55(2.27%)
Adani Ports 743.25↑9.20(1.25%)
Apollo Hospitals 4666.30↑67.15(1.46%)
Asian Paints 3197.00↑52.60(1.67%)
Axis Bank 924.35↓-13.10(-1.40%)
B P C L 365.25↑4.85(1.35%)
Bajaj Auto 4609.70↑17.80(0.39%)
Bajaj Finance 6954.50↓-51.30(-0.73%)
Bajaj Finserv 1450.00↓-15.85(-1.08%)
Bharti Airtel 823.05↑4.60(0.56%)
Britannia Inds. 4583.90↑10.65(0.23%)
Cipla 959.45↓-0.40(-0.04%)
Coal India 240.55↓-3.75(-1.53%)
Divi's Lab. 3495.40↑37.40(1.08%)
Dr Reddy's Labs 4504.10↓-14.80(-0.33%)
Eicher Motors 3707.60↑29.25(0.80%)
Grasim Inds 1723.80↓-1.35(-0.08%)
H D F C 2644.85↓-48.50(-1.80%)
HCL Technologies 1141.80↑5.95(0.52%)
HDFC Bank 1612.35↓-24.40(-1.49%)
HDFC Life Insur. 593.20↑8.05(1.38%)
Hero Motocorp 2763.00↓-16.15(-0.58%)
Hind. Unilever 2650.25↓-6.30(-0.24%)
Hindalco Inds. 407.65↓-5.45(-1.32%)
ICICI Bank 943.45↓-6.50(-0.68%)
IndusInd Bank 1289.00↓-4.25(-0.33%)
Infosys 1325.45↑1.60(0.12%)
ITC 443.90↓-6.00(-1.33%)
JSW Steel 694.00↓-10.60(-1.50%)
Kotak Mah. Bank 1971.00↓-3.70(-0.19%)
Larsen & Toubro 2210.00↓-0.80(-0.04%)
M & M 1313.20↓-15.25(-1.15%)
Maruti Suzuki 9340.05↓-43.30(-0.46%)
Nestle India 21570.00↓-4.45(-0.02%)
NTPC 173.65↓-3.15(-1.78%)
O N G C 155.90↓-2.95(-1.86%)
Power Grid Corpn 233.00↓-2.10(-0.89%)
Reliance Industr 2483.85↓-36.10(-1.43%)
SBI Life Insuran 1231.20↑15.30(1.26%)
St Bk of India 583.00↓-9.80(-1.65%)
Sun Pharma.Inds. 971.40↑11.80(1.23%)
Tata Consumer 791.00↑0.10(0.01%)
Tata Motors 525.95↑7.15(1.38%)
Tata Steel 106.85↓-0.20(-0.19%)
TCS 3303.85↓-12.35(-0.37%)
Tech Mahindra 1111.30↑12.90(1.17%)
Titan Company 2800.30↓-2.20(-0.08%)
UltraTech Cem. 7807.00↓-94.95(-1.20%)
UPL 688.40↓-0.65(-0.09%)
Wipro 402.25↓-0.25(-0.06%)

IT, pharma segments may not provide hedge if rupee weakens

There are concerns over margin and growth, which may weigh on sentiment

Premium

If the rupee does weaken, the classic hedges would involve the IT sector and the Pharma sector, as export-earners which may gain

3 min read Last Updated : Dec 01 2021 | 4:04 AM IST

Changes in the attitude of the US Federal Reserve (US Fed) have led to changes in the attitude of foreign portfolio investors (FPIs). The US Fed has started tapering its monthly bond-buying programme by 15 per cent a month, and has hinted at a rate hike in the first half of calendar year 2022 (CY22). The dollar has hardened, and tighter money supply has made FPIs cautious.

The FPIs have sold Rs 19,500 crore worth of Indian equity since October 1, and they are net sellers to the tune of Rs 10,965 crore in FY22 (until November 30). The rupee has fallen a little (less than 1 per cent) in the last two months.

Several FPIs have issued advisories stating that India is very highly-valued and they will cut exposure. Historically, FPIs have cut back on December exposure simply because of the Christmas break and financial year end for some FPIs.