One man's meat is another man's poison: these stocks to benefit as rupee weakens

It is very easy for the investors to get carried away with the demonetisation and all the volatility that the current monetary environment has created in the system. One of the most important macroeconomic fallout from the current demonetisation move has been Indian rupee, which nevertheless was trending lower as US dollar strengthened against all the emerging economies.

Infact INR was one of the strongest currencies in the emerging markets space. The important thing to notice for several of the investors and momentum traders is that INR is weakening and is expected to weaken further albeit at a slower pace.

Export oriented stocks may stand to benefit from such a move with INR weakening. Broadly speaking IT sector and Pharma sector could be the biggest beneficiaries along with the select packaging companies like UFlex. Infosys, TCS, HCL Technologies from the IT sector and stocks like Sun Pharma, Natco Pharma could attract lot of investors’ attention as the rupee depreciation could be beneficial for these companies.

With demonetisation in place there is a slight possibility of increase in preference to hold foreign currency assets as compared to assets in local currencies till the time things settle down in the monetary system in India.