Browsing by Author "Pinto, Prakash"

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    Crude oil futures to manage the price risk of textile equities : an empirical evidence from India
    (The National Research-Development Institute for Textile and Leather (INCDTP), 2022) Kumar, B. R. Pradeep; Kumar, K. Abhaya; Pinto, Prakash; Hawaldar, Iqbal Thonse; Spulbar, Cristi; Birău, Ramona; Anghel, Lucian Claudiu
    The textile sector in India is the oldest manufacturing sector. As the raw materials for this sector are sourced from the petrochemical industries, the earnings of Indian textile companies are dependent on the crude oil price. The crude price in the international market has become more volatile and hence, the equity price of Indian textile companies has become more volatile. This study aims to develop two price risk management strategies for Indian textile equities. Using the vector autoregressive (VAR) model, a price forecast model, further the possibility of cross hedge for textile equities with the help of crude futures is examined using the Granger causality test and Pearson correlation statistics. The results of the study showed that crude futures price in India is one of the price determinants of textile industry stock prices.