Given the recent weakness in the rupee and the high forward premium, information technology companies can prove to be good defensive stocks with low downside risks in the prevailing market conditions, Moses Harding, head (global markets group), IndusInd Bank, tells Puneet Wadhwa.
In a bid to position itself in the highly competitive retail banking segment, Hinduja group promoted IndusInd Bank on Wednesday said it was open to acquisitions.
The Rupee is expected to weaken further against the dollar.
On Friday, the euro weakened to a near 14-month-low against the dollar, after the European Central Bank announced a fresh round of stimulus and promised more if required.
The view among the regulator and the government is that the currency is overvalued
The central bank has been intervening in the foreign exchange market by buying dollars, and this is capping the rupee's gains.
The Street had factored in the NDA win, owing to which the appreciation in the rupee is expected to be limited
To neutralise this, RBI has been doing forward swaps
Growth in India's gross domestic product for the June quarter of 2013-14, as well as for the entire 2014-15, was 4.7%.
The problems are being compounded by perceptions that India is ill suited to defend the currency in the near-term.
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