Rajat Rajgarhia, CEO - Institutional Equities at Motilal Oswal Financial Services said that the currency depreciation will be positive for many businesses.
On the rupee, Rajgarhia said, “I think 70-71 per dollar is not a reason to be worried about. We somewhere needed this kind of a rupee level to boost our exports, boost our industrial activity. The worry would be if this moves up from these levels to maybe more closer to 74-75 per dollar, then that is something which probably will create more a dent. However, I think 70 per dollar is really a good level as far as earnings are concerned right now.”
Speaking about the market, Rajgarhia said, “Across the board over the last three days, if I were to sum up the commentary of all the companies, Q1 was great but it also had a low base last year Q1. The underlying demand growth recovery in many of the sectors has been quite good and I think also the recovery that you have been seeing in the cyclicals have also added to this market. While in general market should get worried about the way currency has behaved, but I think in this round, this currency depreciation is something which is going to be net-net quite positive for many businesses.”
Susmit Patodia, Head-Sales - Institutional Equities at Motilal Oswal Financial Services said that the foreign investors are a little more wary of valuations than domestic because they have options apart from India as well.
“If you look at the entire PSU space, we have had significant interest from foreigners in Petronet’s of the world, the utilities in general. If you go over to the media, I think there is a lot of interest in the media part of the market as well. Financials is an independent entity right now, everybody in the market loves financials. Even in financials if you look at, the corporate banks, the maximum interest is in the corporate banks from the foreign investors” Patodia said.
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