International Finance June 2018 Assignment

31 Mar

International Finance

1. Finance minister Mr. Arun Jaitley announced in the budget about long term capital gain tax, share market gave negative reaction on it, explain the reaction of FII or FPI on long term capital gain tax.

2. “The Eurocurrency market owes its existence to differences in national financial regulation combined with declining barriers to international capital movements.” Do you agree with the statement? Explain with the help of various Euro-Currency Market instruments.

3. The Chinese government’s move to ban waste paper amidst environment concerns is expected to benefit the Indian paper manufacturers. Waste Paper (WP) is one of the major sources of raw material used for manufacturing the recycled paper products. The recycled paper products are extensively used for manufacturing packaging materials like corrugated boxes. The Chinese Government’s decision to ban waste paper imports has caused a drop in global waste paper prices. As a result, the price of recycled paper in China, used for packaging material, has increased due to short supply of WP. Indian manufacturers using waste paper stand to benefit on account of lower global waste paper prices (on excess supply) and higher realization for recycled paper.The global shortage of wood pulp has resulted in increasing prices of finished paper. Indian wood pulp based having requisite self-sourcing (farm forestry) are expected to benefit from increasing global finished paper prices.The companies like West Coast Paper, TNPL and NR Agarwal Industries which majorly import waste paper for manufacturing processed recycled paper are expected to improve margins on account of falling waste paper prices. As per the industry reports, the global price fall in waste paper is evident as the old corrugated containers (OCC), the most common form of waste paper, fell from €150 per tonne in July 2017 to €135 per tonne in December 2017. Also, the prices of Kraftliner, the recycled paper manufactured by processing the waste paper, have risen from €642 per tonne in July 2017 to €694 per tonne in December 2017.

a. Paper manufacturing Industry is one of the important industry for India and China, from above paragraph explain the positive and negative effects on the revenue of Indian paper exporter.

b. What will the impacts on FOREX because of Government of China Decision on paper bans? How India can take advantage of it?

How GST will help India to increase foreign capital

15 Sep

International Finance

1. NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level? What are the different forms of investment by foreign investors in Indian market?

2. There is a tension between North Korea and USA, both the countries are in state of war. What will be the impacts of this event on foreign treasury of INDIA?

3. MUMBAI: In what could be a sign of things to come with gushing liquidity coupled with rising optimism about policy reforms in the country after the Rajya Sabha approval for bringing in the Goods & Services Act, the Reserve Bank of India intervened to temper the Indian’s Rupee’s appreciation versus the US dollar, said three currency dealers. Expectations are rising that global investors starved of returns from fixed income investments may raise their investments into the highest yielding emerging market as government’s actions provides them the comfort of prudent economic policies. “Depending on the global risk sentiment we could see fund flows into India continuing in the coming months,” said Brijen Puri, managing director, head of markets, JP Morgan (India). “It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future” On Thursday, some state-owned banks were buying dollars in early trades on behalf of the central bank, when the rupee opened stronger by 15 paisa to the greenback. Later, it pared gains to close at 66.92, up 0.10 per cent from 66.99 on Wednesday. The rupee is now expected to trade in the range of 66.50-67.50 per dollar versus 67-68, seen a few weeks ago, dealers said. The implementation of GST from next fiscal, though could be inflationary in the short term, may add to the gross domestic product by as much as 2 percentage point. That coupled with better tax compliance and higher rates on services could bolster the government’s finances. The perennial fear of government’s fiscal being dodgy could also end. “Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors,” MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank. “While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate.”

Source: Business World

Q3. A. One Tax One Nation – GST introduced by government in July 2017, explain its impact on the currency Indian currency value. What are the advantages and disadvantages of GST to exporter?

Q3. B. How GST will help India to increase foreign capital? Why it is said in paragraph “GST could be inflationary in short term”? How inflow of FOREX will increase due to GST?

One Tax One Nation – GST introduced by government in July 2017

15 Sep

International Finance

1. NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level? What are the different forms of investment by foreign investors in Indian market?

2. There is a tension between North Korea and USA, both the countries are in state of war. What will be the impacts of this event on foreign treasury of INDIA?

3. MUMBAI: In what could be a sign of things to come with gushing liquidity coupled with rising optimism about policy reforms in the country after the Rajya Sabha approval for bringing in the Goods & Services Act, the Reserve Bank of India intervened to temper the Indian’s Rupee’s appreciation versus the US dollar, said three currency dealers. Expectations are rising that global investors starved of returns from fixed income investments may raise their investments into the highest yielding emerging market as government’s actions provides them the comfort of prudent economic policies. “Depending on the global risk sentiment we could see fund flows into India continuing in the coming months,” said Brijen Puri, managing director, head of markets, JP Morgan (India). “It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future” On Thursday, some state-owned banks were buying dollars in early trades on behalf of the central bank, when the rupee opened stronger by 15 paisa to the greenback. Later, it pared gains to close at 66.92, up 0.10 per cent from 66.99 on Wednesday. The rupee is now expected to trade in the range of 66.50-67.50 per dollar versus 67-68, seen a few weeks ago, dealers said. The implementation of GST from next fiscal, though could be inflationary in the short term, may add to the gross domestic product by as much as 2 percentage point. That coupled with better tax compliance and higher rates on services could bolster the government’s finances. The perennial fear of government’s fiscal being dodgy could also end. “Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors,” MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank. “While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate.”

Source: Business World

Q3. A. One Tax One Nation – GST introduced by government in July 2017, explain its impact on the currency Indian currency value. What are the advantages and disadvantages of GST to exporter?

Q3. B. How GST will help India to increase foreign capital? Why it is said in paragraph “GST could be inflationary in short term”? How inflow of FOREX will increase due to GST?

MUMBAI: In what could be a sign of things to come with gushing liquidity

15 Sep

International Finance

1. NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level? What are the different forms of investment by foreign investors in Indian market?

2. There is a tension between North Korea and USA, both the countries are in state of war. What will be the impacts of this event on foreign treasury of INDIA?

3. MUMBAI: In what could be a sign of things to come with gushing liquidity coupled with rising optimism about policy reforms in the country after the Rajya Sabha approval for bringing in the Goods & Services Act, the Reserve Bank of India intervened to temper the Indian’s Rupee’s appreciation versus the US dollar, said three currency dealers. Expectations are rising that global investors starved of returns from fixed income investments may raise their investments into the highest yielding emerging market as government’s actions provides them the comfort of prudent economic policies. “Depending on the global risk sentiment we could see fund flows into India continuing in the coming months,” said Brijen Puri, managing director, head of markets, JP Morgan (India). “It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future” On Thursday, some state-owned banks were buying dollars in early trades on behalf of the central bank, when the rupee opened stronger by 15 paisa to the greenback. Later, it pared gains to close at 66.92, up 0.10 per cent from 66.99 on Wednesday. The rupee is now expected to trade in the range of 66.50-67.50 per dollar versus 67-68, seen a few weeks ago, dealers said. The implementation of GST from next fiscal, though could be inflationary in the short term, may add to the gross domestic product by as much as 2 percentage point. That coupled with better tax compliance and higher rates on services could bolster the government’s finances. The perennial fear of government’s fiscal being dodgy could also end. “Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors,” MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank. “While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate.”

Source: Business World

Q3. A. One Tax One Nation – GST introduced by government in July 2017, explain its impact on the currency Indian currency value. What are the advantages and disadvantages of GST to exporter?

Q3. B. How GST will help India to increase foreign capital? Why it is said in paragraph “GST could be inflationary in short term”? How inflow of FOREX will increase due to GST?

There is a tension between North Korea and USA, both the countries are in state of war

15 Sep

International Finance

1. NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level? What are the different forms of investment by foreign investors in Indian market?
2. There is a tension between North Korea and USA, both the countries are in state of war. What will be the impacts of this event on foreign treasury of INDIA?
3. MUMBAI: In what could be a sign of things to come with gushing liquidity coupled with rising optimism about policy reforms in the country after the Rajya Sabha approval for bringing in the Goods & Services Act, the Reserve Bank of India intervened to temper the Indian’s Rupee’s appreciation versus the US dollar, said three currency dealers. Expectations are rising that global investors starved of returns from fixed income investments may raise their investments into the highest yielding emerging market as government’s actions provides them the comfort of prudent economic policies. “Depending on the global risk sentiment we could see fund flows into India continuing in the coming months,” said Brijen Puri, managing director, head of markets, JP Morgan (India). “It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future” On Thursday, some state-owned banks were buying dollars in early trades on behalf of the central bank, when the rupee opened stronger by 15 paisa to the greenback. Later, it pared gains to close at 66.92, up 0.10 per cent from 66.99 on Wednesday. The rupee is now expected to trade in the range of 66.50-67.50 per dollar versus 67-68, seen a few weeks ago, dealers said. The implementation of GST from next fiscal, though could be inflationary in the short term, may add to the gross domestic product by as much as 2 percentage point. That coupled with better tax compliance and higher rates on services could bolster the government’s finances. The perennial fear of government’s fiscal being dodgy could also end. “Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors,” MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank. “While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate.”
Source: Business World
Q3. A. One Tax One Nation – GST introduced by government in July 2017, explain its impact on the currency Indian currency value. What are the advantages and disadvantages of GST to exporter?
Q3. B. How GST will help India to increase foreign capital? Why it is said in paragraph “GST could be inflationary in short term”? How inflow of FOREX will increase due to GST?

NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level

15 Sep

International Finance

1. NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level? What are the different forms of investment by foreign investors in Indian market?
2. There is a tension between North Korea and USA, both the countries are in state of war. What will be the impacts of this event on foreign treasury of INDIA?
3. MUMBAI: In what could be a sign of things to come with gushing liquidity coupled with rising optimism about policy reforms in the country after the Rajya Sabha approval for bringing in the Goods & Services Act, the Reserve Bank of India intervened to temper the Indian’s Rupee’s appreciation versus the US dollar, said three currency dealers. Expectations are rising that global investors starved of returns from fixed income investments may raise their investments into the highest yielding emerging market as government’s actions provides them the comfort of prudent economic policies. “Depending on the global risk sentiment we could see fund flows into India continuing in the coming months,” said Brijen Puri, managing director, head of markets, JP Morgan (India). “It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future” On Thursday, some state-owned banks were buying dollars in early trades on behalf of the central bank, when the rupee opened stronger by 15 paisa to the greenback. Later, it pared gains to close at 66.92, up 0.10 per cent from 66.99 on Wednesday. The rupee is now expected to trade in the range of 66.50-67.50 per dollar versus 67-68, seen a few weeks ago, dealers said. The implementation of GST from next fiscal, though could be inflationary in the short term, may add to the gross domestic product by as much as 2 percentage point. That coupled with better tax compliance and higher rates on services could bolster the government’s finances. The perennial fear of government’s fiscal being dodgy could also end. “Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors,” MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank. “While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate.”
Source: Business World
Q3. A. One Tax One Nation – GST introduced by government in July 2017, explain its impact on the currency Indian currency value. What are the advantages and disadvantages of GST to exporter?
Q3. B. How GST will help India to increase foreign capital? Why it is said in paragraph “GST could be inflationary in short term”? How inflow of FOREX will increase due to GST?

International Finance

15 Sep

International Finance

1. NIFTY of NSE touch 10,000 in August 2017, which external factors are responsible for this level? What are the different forms of investment by foreign investors in Indian market?
2. There is a tension between North Korea and USA, both the countries are in state of war. What will be the impacts of this event on foreign treasury of INDIA?
3. MUMBAI: In what could be a sign of things to come with gushing liquidity coupled with rising optimism about policy reforms in the country after the Rajya Sabha approval for bringing in the Goods & Services Act, the Reserve Bank of India intervened to temper the Indian’s Rupee’s appreciation versus the US dollar, said three currency dealers. Expectations are rising that global investors starved of returns from fixed income investments may raise their investments into the highest yielding emerging market as government’s actions provides them the comfort of prudent economic policies. “Depending on the global risk sentiment we could see fund flows into India continuing in the coming months,” said Brijen Puri, managing director, head of markets, JP Morgan (India). “It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future” On Thursday, some state-owned banks were buying dollars in early trades on behalf of the central bank, when the rupee opened stronger by 15 paisa to the greenback. Later, it pared gains to close at 66.92, up 0.10 per cent from 66.99 on Wednesday. The rupee is now expected to trade in the range of 66.50-67.50 per dollar versus 67-68, seen a few weeks ago, dealers said. The implementation of GST from next fiscal, though could be inflationary in the short term, may add to the gross domestic product by as much as 2 percentage point. That coupled with better tax compliance and higher rates on services could bolster the government’s finances. The perennial fear of government’s fiscal being dodgy could also end. “Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors,” MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank. “While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate.”
Source: Business World
Q3. A. One Tax One Nation – GST introduced by government in July 2017, explain its impact on the currency Indian currency value. What are the advantages and disadvantages of GST to exporter?
Q3. B. How GST will help India to increase foreign capital? Why it is said in paragraph “GST could be inflationary in short term”? How inflow of FOREX will increase due to GST?