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INDIAN CURRENCY MARKET

Presented by:

ATUL VAGAL

03

ADITYA JAMBHEKAR

07

PRAFUL AMBRE

10

ANKITA SHAH

20

SNEHA PATEL

37

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 over exchange

Participant in currency market

Investors

Hedgers

Arbitrager

Participant in currency market • Investors • Hedgers • Arbitrager

Currency Future contract specification

Underlying

- USD/INR

Exchange

-NSE and MCX-SX

Trading Hours

-Monday to Friday

Unit of trading

09:00 AM 05:00 PM - 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

Rupee depreciation- cause and

CAUSES

effects

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

(FII’s) lost faith in the Indian economy

Increased demand of dollar

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 been increased 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.

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 pressure on 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.

RUPEE DEPRECIATION-EFFECTS ON

IT SECTOR

RUPEE DEPRECIATION-EFFECTS ON IT SECTOR WIPRO TCS INFOSYS

WIPRO

TCS

INFOSYS

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

Conclusion

Thank

you