Time for a lower rupee

A trader with a six-month horizon can target export-oriented stocks

Let’s look at a data paradox, which is actually not a paradox. India’s trade deficit has got worse and, unsurprisingly, the current account deficit (CAD), which is tied to trade, has also got worse. The trade deficit/surplus is calculated by totting up the value of goods exported versus the value of goods imported. The current account takes the trade numbers into account and also adds up export and import of services (IT) and ‘invisibles’ like tourism earnings and remittances. 

As the trade gap has widened and the CAD has increased we would at first glance expect forex reserves to drop and