Investors often focus on companies that cater primarily to the domestic market. However, given recent global macroeconomic shifts, it may be time to reconsider investing in export-oriented companies, particularly those operating out of India.
Over the past three years, investors in Indian export companies have seen lackluster returns. Why? This is mainly due to the narrowing spread between US Treasury bonds (T-bonds) and Indian T-bonds, caused by aggressive interest rate hikes in various economies around the world. Let's dive into how this affected exporters and the potential for change.