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Rupee depreciation positive for pharma space, says Axis Capital

Updated : September 10, 2018 06:38 AM IST

Axis Capital on Friday said rupee depreciation over the last three weeks is a positive move for the pharma space.

In an interview to CNBC-TV18's Nigel D'Souza and Reema Tendulkar, Srinivasan Subramanian, managing director and head of institutional equities, said the house is little bit concerned about macro in terms of the current account deficit (CAD).

But Subramanian said that he is not surprised about the falling rupee as the currency was stable for four years from 2013 to 2017.

“One of the reasons why foreigners kept away from India was the worry of CAD and what is going to happen to the rupee. But now the rupee is done whatever it has to do, I guess that people will start looking at India little bit more closer," Subramanian said.

Talking about pharma space, Subramanian said that most of the US Food and Drug Administration (FDA) related issues is being slowly being resolved by Indian pharma companies and that will lead to higher earnings for the firms.

From auto space, Subramanian thinks two-wheelers will do well as rural demand comes through.
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