STUDY ON CURRENCY MARKET AT LKP SECURITIES

LTD

PRESENTED BY
POONAM KUMARI
ALLIANCE ASCENT COLLEGE
MBA (FINANCE)
 INTRODUCTION
The Currency market is a global, worldwide
decentralized over-the-counter financial market for
trading currencies.

The currency market is also called as the foreign

exchange where in the traders come in and trade
different foreign currencies or invest on any
particular foreign money.
This is one of the best market and easy to liquidate
the currency as and when required.
Meaning of currency Market (Forex Market):
Due to a huge development in the globalization companies started expanding

and exporting the goods to various countries this is how the foreign exchange
market was created which will make any traders to trade on at ease by
supplying the currency of that particular country in which the trader is trading
with.

This market also was created for the investors to invest on any of the foreign
currency.

The foreign exchange market determines the relative values of different

currencies.
The primary purpose of the foreign exchange is to assist international trade and
investment, by allowing businesses to convert one currency to another
currency.
 COMPANY OVERVIE
LKP securities was established in 1948 which deals with financial
services group in the field of equities market, debt markets, corporate
finance, investment banking and commodities.

Lkp is listed on BSE index and with its headquarters inMumbai.Mr.

Mahendra V Doshi is the Executive chairman & promoter of the
company.

VISION AND MISSION STATEMENT

Vision:
To be a leading investment company, providing investment products &
services for the Local and International Markets.

Mission:
To achieve good investment returns for both their shareholders & clients
and also to increase the productivity by diversifying their investments.
OBJECTIVES OF THE STUDY
To study the impact of currency market in
Indian economy.
To study investors experience in currency
market.
 METHODOLOGY
Exploratory research is being adopted to find the idea behind
currency trading pattern and its sensitivity influencers.

Sources of Data
Primary sources

The primary data has been collected from the questionnaire prepared for
all the account holders of LKP Securities Limited, who trade in currency.

Secondary sources:
The secondary data such as various past surveys, internet, Newspapers,
magazines and books.
Sample size:
A sample of 50 investors has taken.
The method of selecting sample (Non probability

technique) is convenience sampling.

Techniques Used
The questionnaire technique will be used in order to

gain information from the investors regarding the

effectiveness of the procedure of currency trading.
Data has analysed using MS. Excel.
IMPACT OF CURRENCY APPRECIATION AND
DEPRECIATION ON INDIAN ECONOMY.
Impact on It is called Rupee
DEPRECIATON when value
of a rupee declines as
compare to dollar (For an
example, when US$-INR
moves from Rs.55/- to
Rs60/
Importers Imports become costly as for
each USD we have to pay
Rs5/- more IMPORTS
BECOME COSTLIER
Exporters Exporters will have higher
revenue. For exports of each
Dollar, the exporter will get
Rs 5 higher
EXPORTERS EARN MORE
Indian Who Wish to Go For each dollar taken abroad
on Holidays Abroad and for spending, the travelers
for Education has to pay Rs 5 more and
thus this trip will become
costlier Education & Holiday
packages will
COSTLIER
Rupee APPRECIATES
when value of a rupee
becomes high as
compare to dollar (For
example, when US$-INR
moves from Rs60/- to Rs
55/-
Imports become cheaper as
for each USD we have to pay
Rs5 less IMPORTS BECOME
CHEAPER
Exporters will earn lower
revenue. For exports of each
dollar, now the exporter will
get Rs 5 less. EXPORTERS
EARN LESS
For each dollar he intends to
take abroad for spending,
the travelers has to pay Rs3
less and thus this trip will
become cheaper. Education
and Holiday packages will
CHEAPER
 FINDINGS
Any firm which is into exporting and importing of
goods should obtain import export code in order to
export or import the goods.

The theories we study in text books are not at all

used in practical that is the stock brokers does not
use in advising their customers.

Stock brokers use concepts called trends to predict

the rates while advising the customers.
 Though forward contracts are not applicable by the rules
SEBI, still few of the traders use such contracts basis on
trustworthy.

From the past five years data we can see that U.S.D have
reasonable appreciation/ depreciation when compared to
other foreign currencies like YEN, EURO, and POUN.

When compared to other foreign currency U.S.D have

greater demand and also most of the exporters and
importers trade in U.S.D.
 SUGGESTIONS/RECOMMENDATIONS

Suggestion for the trading firms:-

The firms have to go thru the rates and

trends of the currencies before selecting

a foreign currency.
In order to have a smooth transaction the

firm has to carry on the steps or the

procedures which might reduce the risks
as well ease.
Suggestions for the new investors:-
The person who is so ever interested in investing on

shares, foreign currencies, bonds must approach any of the

stock broker or the consultant to obtain a basic knowledge
about the share market so that it will clear all the myths in
the mind.

The investor before investing he/ she has to go thru the

history and the trends of all the various foreign currencies
so as to decide which to invest on.

Investors should ask for the guidance and procedures so as

to follow legally and reduces the risks involved in it. And
also should obtain only one IEC for one pan card.
 CONCLUSION
The awareness of the forex market in India is very low in compare to
other financial instruments. In India USD, EURO, GBP, and JPY are the
currencies been traded most.
USD and EURO are the most preferred currency in response from the
respondents. There is high volume in this two currency pair in India.
The earning in currency market is low in comparison of Equity or
Commodity market.
The volatility in currency rates is very less. It doesnt volatile as equity
or commodity market. The risk is also very less in the currency market.
The main or primary object of investing in currency market by investor
is hedging. More number of respondents is connected in the business of
Import-Export. They use to hedge the currency market for future
payment and earn the deference.
THANK YOU