Key Points on What Yuan devaluation means to Indian Share Market
Key Points on What Yuan devaluation means to Indian Share Market
- China is Worlds largest Manufacturing export country.
- With 2 % Devaluation of the currency, the export from China will become Cheaper.
- So countries like India which is also trying to become Manufacturing Country now has to compete with China as the Product manufactured in China will be Cheaper then India.
- So in order to handle this Indian Rupee will also depreciate close to 2 % if it want to stay competitive with China
- So our currency will devalue some where at close to 65.5 Rs per dollar.
- We will see exporting companies losing close to at-least 2 % of there revenue because of this.
- Also this will put lot of companies in Slowdown as China itself is struggling with its exports and when will we export if China cant export :)
- So apart from all the Media buzz that we will handle it, truth it truth. We are going to have very tough 2 to 3 quarters of results.
Dear Sir, i am novice. I have 1 question.
ReplyDeleteIf rupee depreciates, wont the exporting companies realise good amount of money?
how will it affect exporting companies ? infact there revenue will rise correct cos rupee is depreciating ? cos they are getting forex conversions at higher rate.
It depends. Here we are competing with yuan. so Chinese exports will be cheaper than Indian exports
ReplyDeleteok, i understand there are different view points. thanks sir
ReplyDelete