23-11-2012, 01:15 PM
PROSPECTS OF CURRENCY FUTURES IN INDIA - RELIGARE SECURITIES LTD.
1PROSPECTS OF CURRENCY.pptx (Size: 686.79 KB / Downloads: 31)
OBJECTIVES
To understand the basic principles of currency futures market in India.
To know the relationship between the exchange rate and sensex
To know the relationship between the exchange rate and balance of payment of India
To know the relationship between the exchange rate and WPI
To know the relationship between the exchange rate and the average daily turnover of the currency futures market in India.
Methodology
Literature Survey:
Journals from EBSCO and EMERALD
Books like “ Financial Management”
Reports of RBI and SEBI
Secondary Data Collection:
“Data Base of Indian Economy, RBI's Warehouse.”
“MCX-SX. (2012, May 30). Market Data”
“Day-wise turnover achieves. Retrieved from NSE”
Secondary data analysis:
Statistical software – “SPSS -17.0”
Analytical tools are used like Pearson Correlation, Linear regression, Multiple Regression , ANOVA
Rise of Derivative Market in India:
A Derivative is a financial instrument whose payoff is determined from some other asset which is called an underlying asset
Formal inception of a variety of derivatives instruments in the foreign exchange market started after the post reform periods in 1990s.
Currency Futures
Currency Futures means a standardised foreign
exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the date of contract, but does not include a forward contract.
Currency Futures market means the market in which currency futures are traded
CONCLUSION
Average daily turnover of currency futures market in the global market is 4 trillion dollars
It is ten times the average daily equity market turnover
Currency futures turnover is growing rapidly in India
Currency futures market will surely topple the equity market in India in the near future