Weak Rupee Turns Out to Be Boon for Top Indian Companies

The rupee which has touched an historic low of 65 has lost up to 16 percent against the U.S. dollar in less than three months. The government and the Reserve Bank of India have taken several measures to stabilize the decline, but have not been successful.

Moreover, many economists are questioning the panic in the markets and asking the government and RBI in intervening aggressively to defend the rupee. "The exchange rate has created more panic than it should. The fact that RBI and the government are taking calibrated steps to check exchange rate has led to fears as investors feel the authorities are also panicking. This is despite the fact that there have been positive steps in terms of policy," said Madan Sabnavis, chief economist, CARE Ratings.

"The rupee has been depreciating for two years. This might actually be the beginning of export recovery in India. Merchandise exports have shown signs of acceleration during July," said Shubhada Rao, chief economist, YES Bank.

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