New Delhi, Oct. 19 -- A change in the Reserve Bank of India (RBI) policy stance and rate hikes would impact companies with highly leveraged balance sheets or those overly dependent on short-term working capital. However, the leverage of Indian corporates, on average, is at decadal lows; hence, an all-round adverse impact on interest costs is unlikely, according to Harsha Upadhyaya, chief investment officer at Kotak Mahindra AMC. Upadhyaya also said that while short-term investors using the Systematic Investment Plan (SIP) route were facing a reality check, long-term investors were exceptionally resilient.

The Reserve Bank of India's shift from a 'neutral' stance to 'calibrated tightening' serves as explicit forward guidance that near-ter...