Derivatives Market in India – An Overview (Part II)

Unlike equity market where one can buy/sell even one stock, derivatives are traded on minimum lot size basis with Rs 5 lakh as the minimum notional value.For example, in case of NIFTY futures, the current index of about 10,500 represents the notional value of one unit. With one lot comprising of 75 units,minimum exposure in NIFTY futures works out to about Rs 7.9 lakh. However, thetrader only needs to put-in the margin money, roughly around Rs 90,000 and not the entire amount.

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Corporate Analysis – Tata Motors

Tata Motors recorded consolidated revenue of Rs 2.96 lakh crore in FY18 placing it is the league of biggest company in the country. However, the profits are rather unimpressive at just about Rs 9,000 crore. Standalone domestic business is going through even tougher times with the company accumulating losses of over Rs 8,000 crore during FY15-18. … Continue reading Corporate Analysis – Tata Motors
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Analysing RBI’s Instruments for “Liquidity Management”

Among the points of contention between RBI and the government is market liquidity condition. While RBI says that there is enough liquidity in the market, government is not sure of that. Both have a point there. The enormity of the issue is evident from the fact that during September month alone, RBI transacted close to … Continue reading Analysing RBI’s Instruments for “Liquidity Management”
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Monetary Policy – Time to Remain Cautious…

The monetary policy committee’s decision today to keep the policy rate unchanged is not surprising. It could have done nothing else. However what is surprising and somewhat concerning is its comments on possibility of a rate cut. While the comment may look fair due to lower inflation, it is actually not so because the core … Continue reading Monetary Policy – Time to Remain Cautious…
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GDP, Sept 18 – Analyzing the Performance

After hitting a high of 8.2% in June 18 quarter (Q1’FY19), GDP growth has slowed to 7.1% in Sept’18 quarter (Q2’19) as per the data released by MOSPI today. GVA growth rate is also in the same line at 6.9% against 8.0% in Q1. Even though the rate has moderated over previous quarter, it is fourth quarter of 7%+ growth and gives sense of stability to the economy after going through the adjustments due to demonetization and GST. However, issues like sharp rise in crude price rise or disturbance in the financial market may keep the growth rate under check in the current quarter. In terms of absolute value, GDP at constant price is Rs 34 lakh crore and Rs 45.5 lakh crore at current prices. Continue reading GDP, Sept 18 – Analyzing the Performance