Bajaj Auto and UPL Limited shares were trading lower tracking Argentina's peso that plummeted 26.5 per cent after the country lifted currency controls.
Bajaj Auto and UPL Limited shares were trading lower on Friday in morning trade tracking Argentina’s peso that plummeted 26.5 per cent after the country lifted currency controls. Argentina’s new government floated the currency as part of a slew of free-market reforms aimed at revitalising the stagnant economy.
Bajaj Auto gets nearly 20 per cent of its revenue from exports to Latin America. According to UPL’s annual report, Argentina contributed Rs 330 crore in FY15 revenues.
At 11.09 am, Bajaj Auto was trading 1.38 per cent down at Rs 2489.40. UPL stocks were trading 1.26 per cent down at Rs 422.20. Later, the shares of the Bajaj Auto and UPL Ltd closed 1.95 per cent and 1.10 per cent down at Rs 2475.10 and 422.90, respectively.
Argentina’s currency fell sharply against the US dollar on Thursday as the new administration lifted deeply unpopular limits on buying foreign currencies, exposing Latin America’s third-largest economy to international market forces in ways not seen in over a decade.
The devaluation, widely expected by economists and even frequently hinted at by new President Mauricio Marci, could exacerbate already soaring prices and spook Argentines, who fear big changes to an economy that has suffered periodic financial meltdowns.