INR (Indian Rupee) has been depreciating from last 2 quarters, from 46 to 54 level IT sector was enjoying this gain, but Oil and Gas companies were suffering and were unable to pass the extra cost to consumers. This move was a negative for growth of economy as well as certain sectors and companies, we saw industrial production (IIP) hitting its lowest level since 2008. Many sectors saw contraction, like mining and capital goods. Depreciating rupee is major concern as imports became costlier, Crude oil contributes to major part of our imports hence rising fuel price was reason for uncontrollable inflation. Interest rate hike to tackle inflation killed industrial growth, bringing pressure in stock markets. Our advice, sell nifty future as more selling is expected till there are fundamental changes in economy.
About Bhaveek PatelBhaveek Patel is technical analyst and investor, his areas of interest includes stock market, forex and gold.
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