FINANCIAL MARKETS

Objectives - 45 Hrs
Financial economics is the branch of economics concerned with the working of financial markets, such as the stock market and the finances of companies. The course focuses equally on the theoretical framework as well as the practical aspects of the functioning of financial markets. This course introduces students to the conceptual and practical operations of the financial markets, institutions and instruments network in Indian context. The course is intended to provide an in-depth understanding of the operational issues of capital and money market network along with its regulatory framework.
 
UNIT 1 -  10 Hrs
Introduction to financial market -Capital Formation, Financial Intermediation, Indian Financial System- Primary market- functions- types - Secondary market
 
UNIT 2 -   8 Hrs
Equity Market- IPOs, Stock market Indices- RBI and money market- SEBI and Capital Market
 
 
UNIT 2 -  08 Hrs
Portfolio management- Tools for managing portfolio- Risk-Return trade-off – Fundamental Analysis – Technical Analysis.
UNIT 3 -  08 Hrs
Derivative Securities- Brief history of derivatives-Types of derivatives products - Forward contracts, future contracts, options, swaps and other derivatives
 
UNIT 4 -  07 Hrs
Foreign exchange market-American Depository Receipts – Global Depository Receipts - Hedging and arbitrage- Raising of capital- Practices of hedging
 
UNIT 5 -  05 Hrs
Risk management -Liquidity motives - Corporate strategy - Interest rate risk management
 
Recommended Readings
1. Roy B. (2005). The Economics of Financial Markets.
2. Boddie, K. M. and Ryan (2003). Investments. McGraw-Hill Publications, New York.
3. Copeland, T. E. and Weston, J. F. (1988). Financial Theory and Corporate Policy, Addison Wesley.
4. Hull, J. M. (2003). Futures, Options and other Derivatives, Prentice Hall.
5. Ross. S. A., Randolph W. W., Jordan, B. D. and Roberts, G. S. (2005). Fundamentals of Corporate Finance, McGraw-Hill Publications, New York.
6. Robert C. R. (2002). Investment Concepts, Analysis and Strategies.
7. Machiraju H. R. (2000). Indian Financial System, Vikas Publishing House
8. Fisher, D. E. and Jordan, R. J. (1999). Security Analysis and Portfolio management,      Eastern Economy Edition.

Programmes
Open Electives