Japan's Yen fell to 34-year low, here's how it will affect Indian stocks

livemint.com:

Average daily turnover in NSE's equity cash segment sees massive fall in March but gains 98% in FY24 “The weakening of the Yen, especially to a 34-year low, can have significant impacts on various sectors in India, particularly the automotive industry. The automotive industry is growing in India, and many Indian companies are collaborating with Japanese companies for technology exchange and components," said CA Krishnan R, Director & CEO of Unimoni Financial Services Limited. Krishnan further highlighted that Maruti Suzuki India Limited (MSIL), which is country's largest passenger car maker, is expected to the biggest gainer.

“A weaker yen will make Japanese products relatively cheaper in international markets, and this will be beneficial for the Indian automotive industry, especially Maruti Suzuki," he added. Also read: 3300% rally in 3 years: Multibagger EV stock below ₹100 hits upper circuit on second day in a row Maruti Suzuki, Motherson Sumi, and Sharp are among the stocks with Japanese lineage that are likely to be in focus. Analysts further said that the fall in the Japanese currency will benefit the importers.

"The fall in Japanese yen will benefit the importers as they will be required to pay less rupees for their imports in yen with rupee being in small range. Earlier in February 2022, 100 Yen was costing ₹65, which has now come down to ₹55," Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, was quoted as saying by The Economic Times. Bhansali further added, “If royalty payments are being made by companies in yen, the outgoing will be lower.