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  1. 1. By V.Saravanan I Year MBA Anna University Coimbatore EMERGING TRENDS IN FOREX MARKET
  2. 2. FACTOR X In The 3rd Quarter Of 2004, Buffett Posted Profits Of $412 Million........Because of Factor X   Bill Gates May Have  Been Following His Friend Warren Buffett's Advice.... As He Began His Investments in F actor X Bill Gates Was 2006‘s..World's Richest Man…. George Soros Made His Name...By  Earning $1 Billion On… 1 Day, In 1992; It Is Estimated That Soros Has Made $7 Billion In The 3 Decades From 1969 To 1999! Due to Factor X
  3. 3. <ul><li>FOREX </li></ul><ul><li>Democratic Market </li></ul><ul><li>For the Money ,By The Money ,To the Individual </li></ul><ul><li>With Capitalistic Idea </li></ul><ul><li>Let Money to do More For us </li></ul>
  5. 5. GLOBAL FOREX MARKET <ul><li>Highest liquidity: Daily global trading volumes would likely reachUS$5 trillion In 201 </li></ul><ul><li>Deal flow in the foreign exchange market is increasingly transacted electronically. </li></ul><ul><li>An annual turnover more than 10 times world GDP </li></ul>Global Forex Volume Surged to 36% growth during the 2006-2007. Consistent Double Digit Growth in volume. Source: BIS Triennial Survey 2007
  6. 6. Factors that Drives the Forex Market In Indian Context <ul><li>Market & Forex Market System </li></ul><ul><li>Govt Policies </li></ul><ul><li>Economic Shift </li></ul><ul><li>Social Trends </li></ul>
  7. 7. Lucrative Nature of Forex Market <ul><li>chronos and Kairos Phenomenon </li></ul><ul><li>24/5 , offers convenient trading </li></ul><ul><li>Forex exchange is the largest financial market in the world , over $3 trillion in trades every day </li></ul><ul><li>Liquidity factor due to large number of Trader base globally </li></ul><ul><li>Optimum Leverage , Margin accounts in Forex Ranges from 100:1 to 200:1. </li></ul><ul><li>Minimum Trade Accounts </li></ul><ul><li>Lucrative ROI in Short Term. </li></ul><ul><li>Profit booking in both ends during rise as well as fall </li></ul>
  8. 8. Government Policies <ul><li>In Indian Context, Central Govt acts as an Facilitator in increasing Global transaction. </li></ul><ul><li>Complete Liberalization Pricing And Payment Methods </li></ul><ul><li>Separate Governing Body like Foreign Investment Promotion Board to clear proposals of around $358.3 million. </li></ul><ul><li>Monetary Policy Favoring Forex By containing Inflationary Pressures. </li></ul><ul><li>Foreign Exchange Reserves of India rose to $2.79 billion for the week ended April from earlier $2 billion mark , Retains the Forex Market More Active. </li></ul>
  9. 9. Govt Policies <ul><li>In 2009 Exim Bank extend 20 lines of credit covering 20 countries to support export projects, in total 114 Countries. </li></ul><ul><li>16 corporate were assisted to invest in 11 countries aggregating investments of around Rs.2,338 Cr by Exim Bank in 2009. </li></ul><ul><li>Approval from SEBI to commence operations in currency futures, Across four pairs of currencies US dollar-rupee; Euro-rupee; Pound Sterling -rupee and Japanese Yen-rupee widens the Exposure of Foreign Exchange Market. </li></ul><ul><li>The Extensive Run Of Equity Market also Favors the Forex Marketing to Mark able Highs </li></ul><ul><li>Budding brokerage Firms Also an Exact Phenomenon for Developing Financial markets in India </li></ul><ul><li>“ 64 Indian cos display consumer products at Canton fair” </li></ul><ul><li>Paves Way For increased Global Transactions. </li></ul>
  10. 10. Economic Shift <ul><li>Govt has given its nod for $157.89 million FDI .Acts as a stimulus for FOREX Market </li></ul><ul><li>India Witnessed 56 % Jump ON FDI on YoY basis. </li></ul><ul><li>Appreciation of Rupee acts as an mobilizing factor Forex in Indian context. </li></ul><ul><li>currency gained 11.7% in the past year against the dollar. </li></ul><ul><li>GDP of 8-9% ,Favors the FDI,FII portfolio in India shows the attractive location for FOREX. </li></ul><ul><li>Corrective action against inflationary pressures restores the inflation in control through hikes of interest Rates in significant Phases Mobilizes the FOREX. </li></ul><ul><li>WPI Inflation expects to slow down by 6% percents by the year end , Insists the progression of Economy </li></ul><ul><li>Moderate Inflation Favors the Investment Activities in a Developed Economy </li></ul><ul><li>In 2009,the FDI in emerging Markets accounts 51.6% of global FDI (Ernst & young survey on Globalization).This fact plays a Vital force for the Forex Market </li></ul>
  11. 11. Social Trends <ul><li>Investors Confident analysis by JPMorgan Reveals that 48% retail investors expected growth in income looking forward for investment opportunities. </li></ul><ul><li>70%of Corporate believes improvement in Profits. </li></ul><ul><li>The young and Risk Taking Population of India lead to investor Population. </li></ul><ul><li>Society Comprising the Half Billion salaried Population acts as an open source for investment ,About 7 million people possess the Demat Account. Shows the increased awareness of the Investment in India. </li></ul><ul><li>Increasing NRI population increases the Currency transaction activities to larger extent.NRI deposits for April- June 2009 around $849 million and outflow $167million .Shows the huge Potential of India FOREX Market. </li></ul>
  12. 12. India enjoyed the Highest salary hike in the world of around 15.2 % on an average 9-10% YoY basis .Enhances the investment opportunities in the society- Quantum Of Disposable income Increased Increased Entrepreneurial Attitude also Favors the Capital Market Social Trends
  13. 13. Conclusion <ul><li>The Combined Force Of </li></ul><ul><li>- Global Equity Market </li></ul><ul><li>- Economy Growth </li></ul><ul><li>- Increased Foreign Investment </li></ul><ul><li>- Foreign Transaction </li></ul><ul><li>Acts as Combined growth drivers of FOREX Market in India </li></ul><ul><li>From the Current 16th Position in Global FOREX Market to Further Highs. </li></ul>
  14. 14. References <ul><li>BIS Triennial Survey 2007 </li></ul><ul><li>Data On Salary,Payscale.Inc., </li></ul><ul><li>Ernst & Young Survey on Globalization </li></ul><ul><li>Jp Morgan Investor Confidence Survey </li></ul><ul><li>RBI GDP Report & FDI . </li></ul><ul><li>WW.Eximbank.Org. </li></ul><ul><li> </li></ul>
  15. 15. Let Money To Do more For US