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@article{166765,
        author = {Rajat Kush and Dr. Madhvi Kush},
        title = {Evolution of the Indian Derivatives Market: Navigating Price Volatility and Risk in a Post-1991 Economy},
        journal = {International Journal of Innovative Research in Technology},
        year = {2024},
        volume = {11},
        number = {2},
        pages = {2779-2783},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=166765},
        abstract = {Starting from 1991, the liberalization of economic policies ushered in a new era for the Indian economy, compelling domestic companies to engage with global markets. In the pre-1990s, strict controls were in place for pricing numerous commodities, metals, and assets. For those not under direct control, prices were heavily influenced by regulated input prices, resulting in a scenario characterized by limited uncertainty and subsequently, subdued price volatility.
However, the post-1991 era marked a significant departure as deregulation commenced. This led to the freeing of prices for most commodities, along with partial deregulation of exchange rates. Simultaneously, trade controls were dismantled, interest rates were lowered, substantial changes were made to facilitate the entry of foreign institutional investors into the capital market, and government securities began to be priced based on market dynamics. As a result, the Indian market witnessed an escalation in price volatility across various goods and services, affecting both producers and consumers.
Furthermore, the introduction of market-driven exchange rates and interest rates introduced an element of unpredictability and instability, impacting the valuation of portfolios and securities. Consequently, the need to mitigate risks gave rise to the utilization of diverse derivatives for hedging purposes. This study focuses on examining the Indian capital market's utilization of derivatives.},
        keywords = {Indian economy, liberalization, exchange rates, interest rates, foreign institutional investors,  government securities, portfolio valuation, securities, risk mitigation, derivatives, hedging, Indian capital market.},
        month = {November},
        }