The Indian rupee closed at over two-year low on Monday by plunging 31 paise to 65.31 against the US dollar on Monday following consistent demand for greenback from importers and state-run banks. The forex markets and money markets are closed on Tuesday on account of Parsi New Year.

The Indian rupee slumped to its lowest since September 2013 last week after China devalued yuan.

The Indian currency is expected to witness some pressure on account of an impending interest rate hike in the US over the coming months.

The Bank of America Merrill Lynch (BofA-ML) FX team has revised USD-INR forecast at an average rate of 64.5 for FY16 and 64 for FY17. They have also listed out beneficiaries, laggards and neutral companies if rupee depreciates further.

Beneficiaries
1. Adani Ports and Gujarat Pipavav: These companies have net positive US exposure as 30 per cent and 71 per cent of FY15 revenues of Adani Ports and Gujarat Pipavav are in dollar.
2. Boiler Turbine Generator/engine manufacturers like Thermax, Cummins and BHEL: The BofA-ML estimates that 5 per cent of rupee depreciation against the dollar would help in 6%-8% incraese in FY17E EPS for these companies.
3. Larsen and Toubro: The company has a positive net dollar exposure due to exports by L&T Infotech and L&T parent entity. However, foreign currency debt reduces the net benefit to 3.4 per cnet of FY17E EPS.

Laggards
1. Power T&D equipment manufacturers like ABB, Siemens, Crompton Greaves: These companies are vulnerable to rupee depreciation as key components of high technology producst continue to be imported.
2. Inox Winds: The company imports two-thirds of its producst from across the globe.
3. Voltas: The company has a flexible sourcing model for AC for sourcing components and sometime full products from various vendors including Chinese partners, resulting in high shareof imported materials.
4. Tata Power: The company’s net dollar exposure is marginally negative as the Mundra power plant USD operating cost is offset by USD income from subsidiaries.

Neutral
1. NTPC, NHPC and Power Grid will be negilgibly affected as these regulated power utilities are entitled to foreign exchange rate variation pass-through.
2. Bharat Electronics is entitled to pass through on foreign exchange rate fluctuation on purchase of imported components.