Strong rupee has dragged IT and PHARMA sectors today.
How are they co-related?
It is possible because these two industries are well settled in US as well.
can somebody shed some light on this topic?
i think its not right …on day basis judging that relation…wait for some time or consider longer time effect. daily movements are non related many times.
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What you said is wrong
Today rupee was strong
IT and Pharma is directly correlated to USD, and inversely correlated to INR
Because they have lot of foreign clients and earn in dollars from them
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It seems simple IF I sell Product or service outside INDIA and get Payment in USD,
Exp::-- Let Product/service I demand 100USD fixed. then I get benefit if rupee down (Exp: when 1USD is greater in INR).
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Thank you for the clarification, you are right. rupee was strong. correction done.
you are right. it should be done on expected big movements only.
It is effecting the IT and pharmaceutical mainly because of the number of export companies. The depreciating rupee can be good for export-focused companies. Hence, net exporters like information technology and pharmaceutical companies with a large exposure to the US stand to benefit the most