Rising yields will expose public sector banks to losses on the 'Available for sale' part of their government bond portfolios.
The strong Indian Rupee may begin to pressure exporters as well.
Interest rate sensitives will feel the pinch of the rising cost of credit, and credit offtake may slow still further
The public sector Oil companies are still awaiting a government decision on subsidy sharing. A strong Rupee somewhat cushions their under recovery on sale of retail fuels.