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Article
Publication date: 29 June 2012

Vivek Bhargava, D.K. Malhotra, Philip Russel and Rahul Singh

The purpose of this paper is to examine if the volatility in the US dollar interest rate swap market impacts the volatility of the swap rates in the Indian swap market.

Abstract

Purpose

The purpose of this paper is to examine if the volatility in the US dollar interest rate swap market impacts the volatility of the swap rates in the Indian swap market.

Design/methodology/approach

The authors use GARCH, EGARCH, and TGARCH modeling to examine volatility spillover between the US and Indian interest rate swap markets.

Findings

Evidence is found of volatility transmission from the US dollar interest rate swap markets to the Indian swap markets. There is no evidence of spillover from the Indian swap markets to the US swap markets. Furthermore, the spillover impact from the US markets to the Indian markets is also asymmetric. The impact on volatility is asymmetric for one‐year swaps, but not for five‐year swaps.

Practical implications

Findings from this study will also identify any arbitrage opportunities that may exist between different segments of the US dollar interest rate swap markets and help to improve interest rate swap market efficiency.

Originality/value

If the financial market liberalization process in these nations has been successful in integrating their market into the pool of the world market, then a foreign investor would not demand a risk‐premium in the returns on deposits in these markets. The findings of this paper are also relevant for other emerging markets' policy makers, as they try to become more integrated in the global economy and try to resolve market inefficiencies and country risk so that obstacles to foreign investments can be removed.

Details

International Journal of Emerging Markets, vol. 7 no. 3
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 13 April 2010

Sheeba Kapil and Kanwal Nayan Kapil

The Indian commodity market requires large investments and enhanced trading activity both in the national as well as the regional commodity markets. The participation of…

Abstract

Purpose

The Indian commodity market requires large investments and enhanced trading activity both in the national as well as the regional commodity markets. The participation of non‐professional people trading commodity markets makes the market a risky venture. Non‐professional participants simply add to the volatility factor of the market. There is a dire need for professional experts who are able to provide advice on commodity trading and build commodity inclusive portfolios. Such professional awareness, expertise, and guidance in commodity trading can come from professional commodity traders called commodity trading advisors (CTAs). The purpose of this paper is to offer arguments and insights as to why the Indian commodity market needs the participation of the CTAs. The money brought in by CTA advised clients will add to the depth, liquidity, and trade which in turn will make commodity prices more efficient. As a regulatory measure, the Indian market too can adopt guidelines structured for CTAs by Commodity Future Trading Commission and National Futures Association. The CTAs can bring the Indian commodity market at par with developed commodity markets like Chicago Board of Trade.

Design/methodology/approach

The paper reviews and discusses the various issues related to CTAs applicability in India. The goal of the paper is to outline the need for allowing CTAs activity in Indian commodity market and discuses the key operational and policy considerations in developing the commodity market for CTAs in India.

Findings

The recent expansion of Indian commodity market has not been very structured. The market has expanded with the expansion in demand for commodities both in spot and derivative market. There have been constraints through policy restrictions and at the same time there has been an effort for liberalization of the commodity market to bring them at par with international commodity market. Of late, the Indian equity market has been very volatile. Participation of CTAs will provide much required downside protection to traditional portfolios and they will also provide the expertise in commodity derivative trading to participants and help build the commodity inclusive portfolios with better return and lesser risk.

Originality/value

This is the first paper that initiates thoughts on allowing CTAs to participate in the Indian commodity market. The paper builds on the concept that CTAs would add the desired price discovery, volume, and depth to the Indian commodity market. The Indian commodity market, despite being quite old, has recently broken free from the restrictive policies and has ushered into an era of initiates supporting commodity derivative market development. To the best of the authors' knowledge, there exists no literature on CTAs participation in India.

Details

International Journal of Emerging Markets, vol. 5 no. 2
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 14 October 2019

Swati Singh and Ralf Wagner

This paper aims to focus on how home-grown Indian companies explored the potential of Indian middle class and realized an opportunity to seize the market gap not catered…

Abstract

Purpose

This paper aims to focus on how home-grown Indian companies explored the potential of Indian middle class and realized an opportunity to seize the market gap not catered by MNCs in India. Across three distinct business contexts, the authors describe the companies’ procedures of developing segment-specific offerings. Doing so, the authors outline novel strategies implemented by these companies to cater to specific needs of the segments.

Design/methodology/approach

Seizing Bandura’s (1986) framework that stresses on the role of cognitive, vicarious, self-reflective and self-regulatory processes, the authors develop a four-layered model of the Indian middle class consumers. Building upon this model, they took multiple case (three caselets) approach for illustrating the strategies of home-grown companies. The authors identify their potential to explore the unknown terrains of various market segments and rework with unique local solutions.

Findings

The study highlights the power of home-grown companies over MNCs in terms of better market understanding and realistic offerings best suited to their needs. Across the divergent business contexts the companies’ strategies have four features in common: customer targeting and developing; localization of business models, particularly services; relating the products to the Indian society; and ethnocentrism and pride.

Research limitations/implications

This study gives priority to a “thick” description of the proceedings without claiming causality. The authors limit this qualitative investigation to pinpointing congruence and contradictions to previous established results.

Practical implications

A key implication of this paper is the relevance of linking firm’s strategy to social-psychological development of customers in emerging economies component. This study provides critical insights for both managers and policymakers on the economic and social upswing as socially responsible and ethical practices are likely to gain public awareness.

Originality/value

The study’s originality springs from understanding the domestic company’s strategies when facing the pressure of (mainly Western) MNCs entering the emerging economies markets. While the latter takes advantage of economies of scale, country of origin effects and the powerful brands, the home-grown businesses are forced to develop divergent advantages and capabilities. Notably, earlier literature focused on changed demand pattern brought by MNCs in emerging economies and not on later part whereby, home-grown companies carve a space for themselves with specially designed improved products and innovative strategies.

Details

European Business Review, vol. 31 no. 6
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 29 May 2019

Karthik Selvanayagam and Varisha Rehman

This paper aims to, first, analyze the transformation of the Indian market by extending Sreekumar and Varman’s (2016) work on history of marketing in India into the…

Abstract

Purpose

This paper aims to, first, analyze the transformation of the Indian market by extending Sreekumar and Varman’s (2016) work on history of marketing in India into the post-colonial era; second, trace the emergence and adoption of various media technologies in the post-colonial Indian market; third, identify the evolving trends in marketing practices alongside the penetration of these media technologies in the market; and finally, argue the need for mindful adoption of marketing practices in the Indian market, rather than direct replication of Western practices.

Design/methodology/approach

The historical perspective on the post-colonial Indian market is done through extant literature review and analysis of marketing practices by iconic brands in the Indian market.

Findings

This research reveals that the adoption of Western marketing practices by brands in the Indian market has led to increasing materialistic consumption patterns among consumers. Furthermore, such practices in the social media technology era impose individualistic values in the Indian consumers, contrary to the cultural values of the country. Therefore, this research posits the need for mindful marketing practices to be adopted for the Indian market.

Social implications

This research shows warning signs of growing materialistic values among Indian consumers and the implications of marketing strategies on the society as a whole.

Originality/value

This study is a first of its kind in highlighting the transformation of the post-colonial Indian market by integrating actual marketing campaigns over this period with literature to present the various issues in the current state of the market.

Details

Journal of Historical Research in Marketing, vol. 11 no. 3
Type: Research Article
ISSN: 1755-750X

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Article
Publication date: 20 June 2016

Amanjot Singh and Manjit Singh

This paper aims to attempt to capture the co-movement of the Indian equity market with some of the major economic giants such as the USA, Europe, Japan and China after the…

Abstract

Purpose

This paper aims to attempt to capture the co-movement of the Indian equity market with some of the major economic giants such as the USA, Europe, Japan and China after the occurrence of global financial crisis in a multivariate framework. Apart from these cross-country co-movements, the study also captures an intertemporal risk-return relationship in the Indian equity market, considering the covariance of the Indian equity market with the other countries as well.

Design/methodology/approach

To account for dynamic correlation coefficients and risk-return dynamics, vector autoregressive (1) dynamic conditional correlation–asymmetric generalized autoregressive conditional heteroskedastic model in a multivariate framework and exponential generalized autoregressive conditional heteroskedastic model in mean with covariances as explanatory variables are used. For an in-depth analysis, Markov regime switching model and optimal hedging ratios and weights are also computed. The span of data ranges from August 10, 2010 to August 7, 2015, especially after the global financial crisis.

Findings

The Indian equity market is not completely decoupled from mature markets as well as emerging market (China), but the time-varying correlation coefficients are on a downward spree after the global financial crisis, except for the US market. The Indian and Chinese equity markets witness a highest level of correlation with each other, followed by the European, US and Japanese markets. Both the optimal portfolio hedge ratios and portfolio weights with two asset classes point out toward portfolio risk minimization through the combination of the Indian and US equity market stocks from a US investor viewpoint. A negative co-movement between the Indian and US market increases the conditional expected returns in the Indian equity market. There is an insignificant but a negative relationship between the expected risk and returns.

Practical implications

The study provides an insight to the international as well as domestic investors and supports the construction of cross-country portfolios and risk management especially after the occurrence of global financial crisis.

Originality/value

The present study contributes to the literature in three senses. First, the period relates to the events after the global financial crisis (2007-2009). Second, the study examines the co-movement of the Indian equity market with four major economic giants such as the USA, Europe, Japan and China in a multivariate framework. These economic giants are excessively following the easy money policies aftermath the financial crisis so as to wriggle out of deflationary phases. Finally, the study captures risk-return relationship in the Indian equity market, considering its covariance with the international markets.

Details

Journal of Indian Business Research, vol. 8 no. 2
Type: Research Article
ISSN: 1755-4195

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Article
Publication date: 14 November 2008

Somesh Kumar Sharma and R. Srinivasan

The purpose of this paper is to identify facts of effective positioning mechanism for Indian market and develop a model that integrates three essential aspects of…

Abstract

Purpose

The purpose of this paper is to identify facts of effective positioning mechanism for Indian market and develop a model that integrates three essential aspects of international trade, which have not been addressed combined yet.

Design/methodology/approach

The article develops the information framework for Indian market positioning. The information mentioned in the framework is validated using statistical tools with R Software and refined using Principal Component Analysis and Factor Analysis. The outcome of analysis develops the model for effective positioning mechanism for Indian market.

Findings

The study explores three statistically significant steps for effective Indian market positioning, which are finally summarized into 18 influencing variables in contrast to 91 variables available in literature.

Research implications

The 18 variables explored in this study should be considered as initial set of information, only for Indian market positioning. It should not be taken as standard paradigm to be followed in all cases. Research needs to be made to valuate such implications.

Practical implications

The model developed in this paper will be useful to both mature and ambitious international executives, in identifying the variables that can be considered for strategy formulation at different stages of Indian market positioning process.

Originality/value

This article offers a model that addresses research on Indian market positioning. It attempts to establish a relationship among the three components of international business, which can bring potential benefits to the foreign players.

Details

Management Decision, vol. 46 no. 10
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 17 February 2012

Phani Tej Adidam, Madhumita Banerjee and Paurav Shukla

This paper aims to explore the impact of competitive intelligence (CI) practices on the firm's performance in the emerging market context of India. The paper seeks to…

Abstract

Purpose

This paper aims to explore the impact of competitive intelligence (CI) practices on the firm's performance in the emerging market context of India. The paper seeks to answer the following questions: do CI activities have an impact on the market performance of Indian firms? If so, what are the macro and micro environmental drivers of CI for Indian firms? How are CI activities organized within Indian firms? How is the usage and dissemination of CI taking place within Indian firms?

Design/methodology/approach

The study used a stratified sample developed from a variety of mailing lists focusing on Indian firms. The study employed a cross‐sectional, survey‐based methodology.

Findings

The study identifies two key aspects: Indian firms that exhibit higher levels of CI activities indeed achieve better financial performance results; and the current level of CI activities in Indian firms is at a moderate level, thereby suggesting an opportunity for using and implementing more sophisticated CI techniques.

Practical implications

The findings of this study should assist local and foreign managers in having a more informed understanding of CI activities in the Indian marketplace. Additionally, these findings provide directives to managers regarding the untapped opportunities and potential that CI can offer in a highly volatile and rapidly changing market scenario.

Originality/value

This is the first study that empirically investigates the relationship between the level of CI activities and firm performance in an emerging market context. It is also the first study of its kind that explores the current state of CI practices in the Indian market.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 3
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 6 February 2017

Supriya Maheshwari and Raj Singh Dhankar

The purpose of this paper is to provide insights into the profitability of momentum strategies in the Indian stock market. This study further evaluates whether the…

Abstract

Purpose

The purpose of this paper is to provide insights into the profitability of momentum strategies in the Indian stock market. This study further evaluates whether the momentum effect is a manifestation of size, value or an illiquidity effect.

Design/methodology/approach

Monthly stock return data of 470 BSE listed stocks over the sample period from January 1997 to March 2013 were used to create extreme portfolios (winner and loser). The returns of extreme portfolios were evaluated using t-statistics and a risk-adjusted measure. Further checks were imposed by controlling for other potential sources of risk including size, value and illiquidity.

Findings

The study provides support in favor of momentum profitability in the Indian stock market. In contrast to the literature, momentum profitability is driven by winning stocks, and hence, buying past winning stocks generates higher returns than shorting loosing stocks in the Indian stock market. Strong momentum profits were observed even after controlling for size, value and trading volume of stocks. This suggests that the momentum effect in the Indian stock market is not a manifestation of small size effect, value effect or an illiquidity effect.

Practical implications

From the practitioner’s perspective, the study indicates that a momentum-based investment strategy in the short run is still persistent and can generate potential profits in the Indian stock market.

Originality/value

There is little empirical evidence on the momentum profitability, especially in the Indian stock market. The study contributes toward the literature by analyzing the momentum profitability even after controlling for size, value and an illiquidity effect. Some aspects of the momentum effect were observed to be dissimilar from those observed in literature for the USA and other countries. Such findings justify the need for testing the momentum profitability in stock markets other than the USA.

Details

Journal of Advances in Management Research, vol. 14 no. 1
Type: Research Article
ISSN: 0972-7981

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Article
Publication date: 24 October 2008

Saikat Banerjee

Behavior of a consumer largely depends on interplay between inner self and outer stimuli. Consumption decisions made in the market cannot be viewed as an independent event…

Abstract

Purpose

Behavior of a consumer largely depends on interplay between inner self and outer stimuli. Consumption decisions made in the market cannot be viewed as an independent event – it is closely related with values and social relationship and cultural allegiance. With globalization, culture becomes predominantly important strategic issue in market that has to be faced and properly managed. But, in different settings, management of cultural diversity could be seen as a threat, or an opportunity. As culture and values vary country to country, a close insight about country‐specific culture and core values is almost essential for a smooth sailing in any market. The purpose of this paper is to discuss overall fundamental dimensions of Indian culture and core values and resultant marketing implications.

Design/methodology/approach

The major task is to identify specific culture and core values at the time of marketing in a cross‐cultural setup. In this backdrop, an attempt has been made in this paper to discuss overall fundamental dimensions of Indian culture and core values with the help of a verbal model. The model has further been examined with the help of empirical marketing evidences from Indian market with an objective to help marketers to address those cultural and value dimensions at the time of their brand marketing in India.

Findings

Inputs about Indian culture and value dimensions can be of immense use to brand managers to strategies their marketing road map to minimize chances of erroneous decision‐making. A table summarizing the aspects that have to be considered at the time of building brands in India has been proposed to facilitate useful marketing decisions to penetrate the Indian market. At the time of starting its journey in a new country like India, the best approach a firm can adopt is to accept major issues involved with culture and values.

Practical implications

The verbal model about core culture and values of India, and proposed strategic roadmap, facilitate marketers to devise more accurate marketing strategies for India.

Originality/value

This paper presents a country‐specific approach that may be useful to marketers busy with consumer marketing in India. A verbal model of “Culture and Value Dimensions of Indian consumer” is of immense help in charting marketing strategies to win over Indian consumers.

Details

Cross Cultural Management: An International Journal, vol. 15 no. 4
Type: Research Article
ISSN: 1352-7606

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Article
Publication date: 24 August 2020

Luh Gede Sri Artini and Ni Luh Putu Sri Sandhi

The purpose of this study is to determine and compare the performance of small and medium enterprises (SME) and manufacturing company stock portfolios in the Indonesian…

Abstract

Purpose

The purpose of this study is to determine and compare the performance of small and medium enterprises (SME) and manufacturing company stock portfolios in the Indonesian, Chinese and Indian capital markets by the Sharpe Index and the significance of differences in average performance in the capital market.

Design/methodology/approach

This is comparative research that compared the performances of SME and manufacturing company stock portfolios in Indonesian, Chinese and Indian capital markets. The hypothesis examination of comparative test used one-way ANOVA technique on the performance of SME and manufacturing company stock portfolios in Indonesian, Chinese and Indian capital markets. One-way ANOVA test was used in the analysis to test the average difference of performance indices of SME and manufacturing company stock portfolios is in Indonesian, Chinese and Indian capital markets.

Findings

The performance of SME and manufacturing company stock portfolios in Indonesian capital market was not better than the performances of IHSG and LQ45 Index, the performance of SME and manufacturing company stock portfolios in Chinese capital market (SZSE) was better than the performance of Shenzhen Composite Index and the performance of Shenzhen A-Share Stock Price Index. The comparison of the performances of SME and manufacturing company stock portfolios in Indonesian, Chinese and Indian capital markets showed that the performance of SME and manufacturing company stock portfolios in Chinese capital market was the best and the performance of SME and manufacturing company stock portfolios in Indonesian capital market was the lowest.

Practical implications

The implication of this study was that SME and manufacturing company stock portfolios had relatively better performances in China and India, so investors should consider investing in SME and manufacturing company stocks. The performance of SME and manufacturing company stock portfolios in Indonesia was not able to exceed market and LQ45 portfolios, so the authority in Indonesia financial market should consider developing a special market for SME and manufacturing company to support the development of SME and manufacturing company in Indonesia and solve the problem of lack of funding source for SME and manufacturing company.

Originality/value

The originality of the present study is in the measurement of the performance of SME and manufacturing company stock portfolio by risk-adjusted return which returns per risk unit measured by Sharpe Index as a more beneficial measurement in measuring stock portfolio performance than average return. Comparative study of the stock portfolio performances of small medium enterprises and manufacturing company In Indonesian, Chinese and Indian stock markets, and object studies conducted in Indonesia, China and India.

Details

Journal of Economic and Administrative Sciences, vol. 37 no. 2
Type: Research Article
ISSN: 1026-4116

Keywords

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