Thursday, May 22, 2014: The economic environment in the country is seeing an-all new high with the incoming Modi-led government. The share markets are reacting positively and the Rupee is regaining its lost ground. All this is likely to lead a drop in the prices of consumer electronics.
However, the companies, that had increased the prices of the consumer electronics products when the Indian currency had hit a record low of 68.83 to a dollar, would wait and watch before slashing any prices. They would also keep a keen watch on the upcoming budget to get a clearer perspective on government policy.
According to a TOI report, Sunil Nayyar, head of sales at Sony India, said that nothing is happening immediately and the company is “closely watching” the rupee movement to work out its future strategy on pricing. He said, “We will wait and watch for the next two to three months. If the rupee continues to strengthen … we can look at passing on the benefit to the market.”
LG also feels the same. While admitting that the Rupee movement is a positive sign, Sanjay Chitkara, head of corporate marketing at LG India, said to TOI, “If this trend continues (stabilized rupee), it will further boost sales in the consumer durables market. We are closely monitoring exchange rates, but it is too early to comment on the price impact.”
It is worth mentioning here that Rupee reached an all-time to 58.64 to a dollar on Tuesday, due to the strong foreign inflows. Nomura Holdings, one of the most accurate rupee forecaster in the last four quarters, predicts that rupee will be 57 per dollar by year-end.
