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7/30/2019 Indian Currency Market Ppt
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INDIAN CURRENCY
MARKET
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Presented by:
ATUL VAGAL 03ADITYA JAMBHEKAR 07
PRAFUL AMBRE 10
ANKITA SHAH 20
SNEHA PATEL 37
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INTRODUCTION
Derivative are financial contract whose value
is determined from one or more underlying
variables
Currency futures based on Euro(EUR)-INR,
Pound Sterling(GBP) - INR and Japanese Yen
(JPY) - INR exchange rates in addition to the
existing USDINR contracts are traded overexchange
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Participant in currency market
Investors
Hedgers
Arbitrager
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Currency Future contract specification
Underlying - USD/INR
Exchange -NSE and MCX-SX
Trading Hours -Monday to Friday
09:00 AM05:00 PM
Unit of trading - 1 contract unit denotes USD 1000
Tick Size - Rs 0.0025 or 0.25 paisa
Last Trading Day - Two working days prior to the last business
day of the expiry month at 12:15pm.
Initial margin -SPAN Based Margin
Extreme loss margin-1% of MTM value of gross open
position
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Rupee depreciation- cause and
effects
CAUSES
Since the great depression of 2008, the Indian economy
had been continuously slowing down.
rate of unemployment in the nation increased The high import of gold and crude oil in such a situation
burdened the current account deficit and caused it to rise
(FIIs) lost faith in the Indian economy
Increased demand of dollar
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Rupee depreciation- cause and
effects
Effects
Imports have become costlier and thus importing crude
oil becomes a burden
the industry level the cost of borrowing has beenincreased for the companies which had taken foreign
loans
the prices of all imported goods have increased.
Students going broad to study now have to shed 20%
extra for every dollar.
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STEPS TAKEN BY RBI
The Reserve Bank of India (RBI) further curbed the availability of funds
(liquidity) in the markets to stem the rupee's free fall against the US dollar.
The central bank will now auction the government of India cash
management bills (CMBs) to raise Rs 22,000 crore on every Monday.
RBI is planning to sell dollars directly to oil companies to ease pressureon the currency.
RBI is reduced the limit for Overseas Direct Investments (ODI) by
domestic companies, other than oil sector. RBI has just limited the ODI
from 400 % to 100% of Net worth.
RBI has put curbs on gold imports while conducting open market
operations of Government bonds.
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RUPEE DEPRECIATION-EFFECTS ON
IT SECTOR
WIPRO TCS
INFOSYS
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Impact on Scrip Infosys
1) Rupee fall leads to increase the wage hike
impact in Infosys.
2) Infosys reaches five month high, reducing a
rupee became a booster.
3) Week rupee strengthen Infosys revenue
help
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Conclusion
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Thankyou