Rupee's fall to benefit Kitex Garments, Vinati Organics, Timken India

Emerging market currencies such as rupee may feel the strain of the Fed’s rate hike in the medium term. One analyst puts the rupee at 70 to the dollar by 2016 end. This will support revenue growth of companies in export-oriented sectors such as IT, pharma, and textiles.

Due to higher realisation, a weaker rupee will cushion the fall in rupee-denominated exports vis-à-vis the drop in dollar terms on slack overseas demand. India’s exports may fall 13% in 2015-16.

Besides large-cap IT companies such as TCS, Infosys and Wipro and pharma majors, including Sun Pharma, Lupin, and Dr Reddy’s, Kitex Garments, Vinati Organics, Ajanta Pharma, Cummins India and Timken India are likely to benefit from higher export earnings.