Archives: Volume 1 • Number 3 •August-September 2007

A Model To Predict The BSE Index and Its Volatality

Two models are worked out to predict the BSE index and its volatility. The first model uses the prices of Rupee-US dollar rate and the Gold price in Mumbai, where as the second model uses the trend and AR (p)-ARCH (q) for the prediction. The performance of any stock market – whether it is going up or down is reported in an index, which serves as an important tool for measuring the overall health of the stock market. In most countries, there is more than one index. The BSE index, also called as Sensex compiled in 1986 is India’s first index. It is a basket of 30 constituent stocks representing stocks presenting a sample of large, liquid and representative companies. The base year of BSE index is 1978-79 and its base value is 100. The index is widely reported in both domestic and international markets through print as well as electronic media. Due to its wide acceptance amongst the investors, BSE index is regarded to be the pulse of the Indian stock market as it is the language that all investors understand.

Dr.Sanjeev C.Panandikar
Adjunct Professor
School of Management Technology
International Institute of Information Technology,Pune,Maharashtra
scpanandikar@gmail.com

The term Foreign Exchange is used to indicate the exchange of one currency for another and also denotes a foreign currency. The importing currency pays money to exporting in return of goods either in its domestic currency or hard currency. The currency, which facilitates the payment to complete the transaction, is called foreign exchange. Foreign exchange is bought and sold in foreign exchange markets. The components of foreign exchange market include buyers, sellers and intermediaries in foreign exchange market. It is the market for currencies of various countries any- where in globe, as financial centers of world are united as a single market.

R.Amsaveni
Lecturer
PG Department of Finance and Computer Applications
SNR Sons College
Coimbatore,Tamil Nadu

S.Geetha
Lecturer
PG Department of Finance and Computer Applications,SNR Sons College
Coimbatore,Tamil Nadu

Urban Cooperative Banks - An Introspection

The current status of Urban Cooperative Banks (UCBs) is being discussed very widely today. In this connection, here are some observations for the consideration of people related with the UCBs. However, before that, let us have a look at some statistical data. The statistics will give an idea about the role played by UCB Sector in the Indian economy, particularly Indian Banking Sector. As on 31st March 2006, there were 1,853 UCBs in the country (excluding 226 UCBs which were under liquidation). Out of these 1,853 UCBs, 1,479 UCBs (i.e. about 80% of the UCBs in the entire country) were concentrated in five states viz. Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu.

Dr.Satish M.Inamdar
Director
Indian Center for International Business
Pune,Maharashtra

Indian Stock Market- Hedging of "Index Future" is a Boon or Bane

Investment on securities such as shares, debentures, bonds are profitable as well as exciting. It is indeed rewarding but involves a great deal of risk. It is acknowledged to be one of the most risky avenues for investment. Risk reduction is significant for the investor as it is directly related to the return of the investments. Some of the risk management technologies that can be used in the capital market now days are: Risk Avoidance, Combination, Diversification, Risk Transfer, Portfolio Investment, and Hedging. 

R.P.Buvaneswari
Asst.Prof
Department of MBA
Annai Mathammal Sheela Engg College
Namakkal,Tamil Nadu 

Dr.M.Ragupathi
Reader
Department of Commerce
KSR College of Arts & Science
Thiruchengode,Tamil Nadu

A.Mani
Research Scholar
Department of Commerce
KSR College of Arts and Science
Thiruchengode,Tamil Nadu

M. Kirubakaran
Lecturer
Department of MBA
Annai Mathammal Sheela Engg College
Namakkal,Tamil Nadu

Significant Determinants of Profitability of Banking Sector in India

The global banking system in recent times has moved away from unnecessary boundaries of regulations to more deregulated arena, which has not only stimulated competition but has exposed banks world-wide to credit and market risks. Though risks are inherent in banking business but in recent times, they have become more volatile and complex due to problems in resource mobilization and allocation in the context of new banking policy pursued recently in India. The paper reveals that the secret of successful banking in modern times hinges on reconciling between risk and return, which move in opposite direction. Hence, the profitability of a banking business in the era of deregulation and competition largely depends on its ability to efficiently manage the various risks, to which they are exposed in the changed scenario. Profits, in banking terms refer to the excess of interest spread over burden, whereas profitability is a ratio of net earnings to the total funds used. Profitability in the banking parlance denotes the efficiency with which a bank deploys its total resources to optimize its net profits and thus serve as an index to the degree of asset utilization and managerial effectiveness.

Dr.O.P.Verma
Sr.Lecturer
Department of Commerce
H.P.University
Shimla,Himachal Pradesh

Dr. Kulbhushan Chandel
Sr.Lecturer
Department of Commerce
H.P.University
Shimla,Himachal Pradesh