Indian equity markets are under performing for the last one month and showed inbuilt weakness in today’s trade. Many stocks are trading at their 52 week lows. The stocks that touched years low include A2Z Maintenance, Andhra Bank, Balaji Telefilm, Dhanlaxmi Bank, DLF, IDBI Bank, IOB, IVRCL, Jaiprakash Asso, SAIL etc.
The trend seems to continue until rupee find a level on its own. As rupee showed signs of recovery and stabilization the fall in stock market may halt for some time. One should not rush to invest as caution is required as many other factors that influence equity markets are still not that encouraging.
The major loses if rupees falls further will be companies that import in huge volumes like oil companies(BPCL, HPCL, IOC), same way the companies that would benefit are IT companies(Inosys, Wipro, TCS) who are mostly export oriented.