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'Improved economic activity to support demand for steel, cement & chemicals'
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IANS | 05 Jul, 2022
Fitch Ratings forecast strong medium-term growth to support the demand
for India's steel, cement and chemicals sectors, with improved economic
activity boosting power and petroleum product sales.
The
credit rating agency also said the adequate balance sheet buffers and
strengthening demand should mitigate pricing and cost pressure at most
rated Indian corporates.
According to Fitch, the steel prices in
the medium-term are likely to moderate due to the industry's demand and
supply dynamics, while cement prices will be pressured by added capacity
from large manufacturers over the next few years.
As regards the
near-term fuel prices, Fitch said it will be a function of the
government's efforts to balance fiscal needs, inflationary pressure and
the financial health of oil marketing companies.
Rising energy
prices are likely to pressure the margins of steel manufacturers, auto
suppliers, cement producers, chemicals manufacturers and oil marketing
companies, despite government intervention to manage surging inflation,
the rating agency said.
Meanwhile, the information technology
services, telecom and pharmaceutical sectors face moderate wage and
input cost risks, balanced by high utilisation rates and a better
ability than industrial sectors to pass on higher costs to end
consumers.
A generally supportive regulatory framework limits
exposure to cost inflation for electricity generation companies and
network utilities, while strong oil and gas prices will widen margins at
upstream companies.
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| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
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66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
| Japanese
Yen |
58.85 |
56.85 |
| As on 13 Aug, 2022 |
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