Every event in the currency market has a twin impact, while some lose but there are others which also gain. But given the mayhem on the street and the narrative, the beneficiaries of that event are overlooked. Today as the unwinding of Yen carry trade takes place in the global market and global markets are melting, one is forgetting the fact that strength of the Japanese yen will help the Indian companies which are exporting to Japan. The reason, cost are in Indian rupee, sales are in Japanese Yen and when that money is converted to rupee, the exporting company will get more Indian rupees. While we export a number of goods, the most significant play is in the pharma space but only in some stocks as very few Indian pharma companies have exposure to the Japanese market given the fact that regulatory standards in Japanese markets are extremely high.
