Analysts say a bigger challenge for India Inc would be the expected decline in aggregate demand and thus lower top line growth
India Inc stares at a further decline in operating margins and profitability in the coming quarters owing to the twin blows of a depreciation in the value of the rupee against major currencies and a rise in interest rates after a surprise intervention by the Reserve Bank of India (RBI) last week.
Analysts say the depreciation in the rupee, which touched a new low against the dollar on Monday, will raise the rupee prices of key industrial inputs such as oil, coal, industrial metals, bulk chemicals, agri-commodities, and imported components for manufacturing companies.
The rate hike and the consequent rise
First Published: May 12 2022 | 12:32 AM IST