University of Calcutta (informally known as Calcutta University or CU) is a collegiate public state university located in Kolkata, West Bengal, India.&nbsp;Within India it is recognized as a &quot;Five-Star University&quot; and accredited &quot;A&quot; Grade by National Assessment and Accreditation Council.

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The University of Calcutta has secured the Fifth position among the Universities of India in the prestigious &quot;Indian University Ranking 2019&quot; list, released by the NIRF of the Ministry of Human Resource Development, Government of India.

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It was established on 24 January 1857, and was one of the first institutions in Asia to be established as a multidisciplinary and Western-style university. Its alumni and faculty include several heads of state, heads of government, social reformers, prominent artists, only academy award winner and Dirac medal winner in India, many Fellows of the Royal Society and five Nobel laureates as of 2019 which is highest in South Asia.

University Of Calcutta

At National Stock Exchange (NSE), the largest by market capitalization and the most liquid stocks, which form the majority of free float market capitalization of the exchange, have traded futures contracts. The equity stock futures segment in India has recorded very high growth in trading volume and turnover for more than one decade where majority trade happens on NSE. The primary objective of this study is to investigate the dynamic linkages between equity stock futures and their underlying spot markets. The article examines market efficiency and the causal relationship between single-stock futures and underlying stocks traded at NSE, by employing Johansen cointegration test, a test for autoregressive (AR) order of basis, vector error correction model (VECM) and impulse response functions. The result shows the existence of long-run equilibrium relationship between equity stock futures and their underlying stocks. The spot market is found to play a lead role in correction of any short-run disequilibrium towards long-run equilibrium, for the majority of stocks. Both spot and future markets contribute in price discovery and neither of the markets display considerably higher information efficiency compared to the other. In contrast, the study also reveals possibilities of arbitrage opportunity between the equity stock futures market and the underlying spot market in absence of transaction costs possibly due to faster correction of short-run disequilibrium by spot prices. © 2020 International Management Institute, New Delhi.

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Commerce

Global Business Review

Efficiency of Indian Equity Futures Market—An Empirical Analysis with reference to National Stock Exchange

This paper aims to assess the weather risk exposure of Indian power sector from both generation and demand sides. The study considers two representative firms - firstly, Damodar Valley Corporation (DVC), a hydro-generator, to assess its rainfall exposure, and secondly, Calcutta Electric Supply Corporation (CESC), a retail power supplier, to assess the temperature sensitivity of power demand. The study opts for 'Value at Risk' approach, which combines both the sensitivity of power variables towards weather variable and the probability of weather change. The sensitivity is measured using regression analysis with autoregressive distributed lag (ARDL). Parametric distributions are fitted to weather data to assess probabilities. Due to the 'fat-tail' characteristic of the fitted distribution, a 'conditional value-at-risk' model is considered more effective. The study reveals that the hydroelectricity generation is highly exposed to monsoon rainfall fluctuation and hence the hydro-generator may experience substantial loss of revenue due to insufficient monsoon, whereas the revenue of retail power distributor is moderately exposed to fluctuation of daily surface temperature.

Energy and Environment

Weather risk assessment of Indian power sector: A conditional value-at-risk approach

Although, it is a generally held belief that foreign portfolio flows benefit the economies of recipient countries, policy-makers worldwide have perennial discomfort about such investments. Such portfolio flows are widely termed as "hot money," given its notorious volatility compared to other forms of capital flows as foreign investors make sudden and concerted withdrawals of portfolio investments at the faintest smell of trouble in the host country, thereby accelerating and magnifying the inconspicuous problem of the downfall in stock prices, often leading to disastrous consequences to the host economy. The discussion is often emphasized by the financial press due to the visible evidence of their contemporaneous nature at times of economic crisis. Relationship between foreign institutional ownership and volatility is largely inconclusive. Although the literature in business newspapers and also some previous empirical studies suggest that institutions tend to destabilize prices by increasing turnover levels, there are some good reasons to believe that higher levels of institutional ownership could be negatively related to volatility. In this present study, using firm-level Indian panel data from 2003 to 2013, we analyzed the association between stock's return volatility and their FN holdings in a VAR framework. The results showed that no significant causal relationship exists between the two variables.