Indian Money Market & It’s Trend Analysis

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Management Research Project
on

“Indian Money Market &
It’s Trend Analysis”

Acknowledgement ………………………………………………….3 Abstract ..................................………..…………………………….4 Objective …………………………………………………………….5 Methodology……………………………………...…………………6 Understanding Money Market……………………………………….7 Money Market Instruments

Government securities.…………………………………………….8 Liquidity Adjustment Facility………………………………………11 T-Bills ………………………………………………………………13 Government Dated Securities………………………………………21 Call and Notice Money Market……………………………………23 Certificate of Deposits ……………………………………………29 Commercial Paper………………………………………………..…33 Collaterized Borrowing and Lending Obligations ….……………..38 Trend Analysis

Repo Transaction ……………………………………………………47 Reverse Repo Transaction ………………………………………….48 91 and 182 Day T-Bill ………………………………………………49 364 Day T- Bill ……………………………………………………...50 CD and CP ……………………………………………………………51 Call Money…………………………………………………………….52 References …………………………………………………………….53

ACNOWLEDGEMENT
The success of any project is the result of hard work & endeavor of not one but many people and this project is no different. I take this opportunity to express my profound and sincere gratitude to Mrs. Monika Kaura (Faculty member) for his inputs and feedback in developing this project. His guidance, continued support, constructive criticism and suggestions helped invaluably in shaping the form and content of this report.

I also acknowledge and thank with deep sense of gratitude, the staff of Research Analyst for their constant support and invaluable suggestions right from the conception to the design and completion of the project.

Without the co-operation of the above personnel’s it would not have been possible for me to complete my research report. Their help and support could not be framed in to words but be defined as an inspiration that guided me all along the course of my project.

I am also thankful to all the person who helped me directly or indirectly in every possible way in the preparation of project report.

ABSTRACT

Our purpose to study the Indian Money Market is to find out the factor which affect the Volume and Yield in Money market. We have various instrument which vary from one day to one year. Government spending, policy, monetary policy, etc. impact on the above mentioned factor Monetary policy covers CRR, Repo Rate, Reverse Repo Rate, SLR etc. Inflation, FII investment, movement of foreign currency also put impact on Volume and Yield.

OBJECTIVE

The objective of this project is to study the role of Money Market in India, the various instrument of money market and the factors affecting the daily volume and yield of these instruments. •The project would also deal with historical data of money market instrument, this would help to understand the trend analysis and than concluding the factors affecting these instruments. •The project would also help to understand us what could be the scenario of Indian money market in the near future.

METHODOLOGY

Study would be mainly focused on the analysis and use of secondary data. Extensive use of various journals, magazines and different online resources would be used to construct the analysis pattern. •Various analysis tools are used to generate report.

Study would not be limited to the study only, but analysis of various instrument and trend analysis of instrument would also be done. •It would also include various regulatory norms for the money markets in India and the benefits and hazards of money market instrument among themselves.

Understanding Money Market

The money market is a mechanism that deals with the lending and borrowing of short term funds. The India Money Market has come of age in the past two decades. In order to study the money market of India in detail, we at first need to understand the parameters around which the money market in India revolves.

The performance of the Indian Money Market is heavily dependent...
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