Markets are at record high and are keeping the investors in a frenzy while the exuberance in global equity markets is having its rub-off effect on the Indian markets as well.

On the other hand the liquidity driven rally in global markets is showing no signs of retracement yet. The political decision making and will power combined with turmoil in some states seems to have affect positively on the investment market as it rallies high. Among the sectoral indices in India , BSE Bankex was the best performer with 3% gain, Fast moving consumer goods – FMCG the worst performer down by 4.2%. Broader markets along with benchmark indices were seen trading with a positive bias as sensex gaining 0.

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7% and nifty gaining nothing less than 1% these are positive signs for growing economy like India and this in turn attracts investments and encourages investors. This research also centres on assessment of uncertainty , contingency and there after management of fiscal risk. Any economy is prone to credit risk and market risk primarily while secondary risks like forex risk , liquidity risk, inflation risk, votality risk and shape risk may also damage the pecuniary reserves of a firm. Desideratum to offset potential or substantial losses/gains that may be incurred by an organization.

   KEYWORDS –  Market, Risk, Management,Finance.  INTRODUCTION  Financial risk incorporates different type of risk pertaining to financial transactions that include firm loans in possibility of default. The downside peril of financial risk is always uncertain and unwanted by any firm because it accounts for loss and debt. Even the best trading house across the globe can incur loss with improper risk management.

Risk management can be limiting and trade lot size, hedging, trading only during certain hours or days, or knowing when to take losses. On the investment side , The US GDP data was below estimates , but it has not had major impact on global equity markets, even as the global GDP growth outlook remains positive. Abundant liquidity in the system aided by solid corporate earnings growth in the US is expected to keep markets in good shape.

Apart from Federal Reserve maintaining status quo on interest rate for now amid depreciating dollar and lower inflation , strong domestic cues kept the market optimism intact. The output of core sectors in India slowed down to 0.4% in June with infra sector slowing down to 19 month low . Moreover , better than expected corporate results despite GST implementation have restrained correction in the markets so far. As of now the broader markets are lacking momentum and the daily moves are driven by handful of stocks that trigger news based extreme upside momentum. The markets are hitting highs , but the stocks are highly volatile hence the investors should maintain targets and stop losses strictly and act accordingly. Investors can add smaller quantities at every dip in the stocks that have hit their peaks along with the markets.  OBJECTIVES To study the current trends going in market to take decisive steps on investment management strategy , detailed by latest case conclusion.

 To explore the areas associated with risk in firms and its control by taking effective measures , supported by case study. Here in this research paper , the method adopted to conduct the study was extensive research approach. So starting with the investment front we can say that investors must revisit the long-term investment thesis and make sure it remains intact. If it doesn’t or if the investment thesis has been fulfilled , one should then sell the investment and put the proceeds to work elsewhere. That can happen in less than a year.

 A stock is said to under perform if it gives a return that is worse than an index or the overall stock market. Under performing stocks during broader market uptrend are generally not good bets for long positions. Investors who are holding such stocks need to look a bit closely as to why these are under performing and take a call on whether they should exit the stock.Diversification good for portfolio’s health – study on Virinchi Information Technology firm.Virinchi healthcare a 100% subsidiary of Virinchi Information Technology , expanded its footprint into health care sector by setting up a 600 bed super specialty hospital in the upmarket Banjara Hills in Hyderabad at an investment of rupees 300 crore. The company has raised rupees 70 crore from Canara Bank- led consortium of lenders , while the remaining funds for the project were raised internally. The concentrated efforts and investments made to move up the value chain in its chosen market augurs well for the stock.

 Virinchi is witnessing significant traction from its existing customers and is able to generate healthy new leads in the same market. On the financial front Virinchi Limited’s revenue increased 53.9% to rupees 38.76 crore in Q4FY17, as compared to the same period in the previous fiscal. The company’s PBIDT too increased 144.76% to rupees 5.14 crore in Q4FY17 on a yearly basis.

On an annual basis the company’s revenue increased by 39% to rupees 137.15 crore in FY17 from rupees 98.64 crore in the previous fiscal. The company’s PBIDT (Profit before interest, depreciation and tax) stood at rupees 21.28 crore in FY17, an increase of 158.56% from rupees 8.

23 crore in the previous fiscal. The firm’s net profit stood at rupees 11.42 crore up over by 173% in FY17 from rupees 4.18 crore in FY16. RESULT – When valued , the share price of Virinchi Limited is trading at a PE multiple of 9.94x as against it peers such as NIIT Technologies – 13.24x, Polaris Consulting – 15.

46x . the company’s ROE stood at 13.10% and ROA at 6.

12% in FY17, while its total debt to equity ratio stood at 0.89x in FY17. This can be termed as result of diversifying the investment for portfolio’s better performance.

  Financial Risk Management Systematic risk is the fundamental economic risk deep-rooted in the system that cannot be diversified away. According to financial theory, systematic prospect is the only risk for which equity investors are rewarded. To reduce the risk of an adverse price movement is through the use of order management and with descendant. Order management strategies, such as stop-loss orders, can be sparked to avoid excess losses.A case study on Financial Risk Management in BMW – Bayerische Motoren Werke.With the increasing effectiveness of internationalization, multinational firms face challenge of sustaining in the market with their earlier allure .Therefore BMW continuously improves its risk management system in order to become intimate with the respective country, industry and product risks and to ensure compliance with their sustainability standards. BMW took a two-angled approach to manage its foreign exchange exposure.

  1. Natural hedge –  In this approach it would develop ways to spend money in the same currency as where sales were taking place, meaning revenues would also be in the local currency.   2.

 Financial hedge – To reduce financial loss and manage the risk factor BMW set up regional treasury centres in the US, the UK and Singapore. Implementation of the natural hedge strategy was implemented in two ways. The first involved establishing factories in the markets where it sold its products; the second involved making more purchases denominated in the currencies of its main markets. BMW now has production facilities for cars and components in 13 countries. In 2000, its overseas production volume accounted for 20 per cent of the total. By 2011, it had risen to 44 per cent.

 BMW had become one of the first premium carmakers from overseas to set up a plant in the US in mid 1990s. In 2008, BMW announced it was investing $750m to expand its Spartanburg plant in the US. The company advanced its purchasing in US dollars generally, especially in the NAFTA ( North American Free Trade Agreement ) region. Its office in Mexico City made $ 615m of purchases of Mexican auto parts in 2009. A joint venture with Brilliance China Automotive was set up in China, where half the BMW cars for sale in the country are now manufactured. At the end of 2010, BMW announced it would invest 1.8billion rupees in its production plant in Chennai, India, and increase production capacity in India from 6,000 to 10,000 units. Meanwhile, the overseas regional treasury centres were instructed to analyze the exchange rate exposure in their regions on a weekly basis and report it to a group treasurer, part of the group finance operation, in Munich.

 The group treasurer team then consolidates risk figures globally and recommends actions to mitigate foreign exchange risk.  RESULT – By manufacturing into foreign markets the company not only reduces its foreign exchange exposure but also benefits from being close to its customers. In addition, sourcing parts overseas, and therefore closer to its foreign markets, also helps to diverge supply chain risks.  CONCLUSIONThe profit from investment management firms are directly linked to the way in which market behaves. This means that the company’s profits depend on market valuations and the scenarios and factors influencing the market.

 There could be a major decline in asset prices with the fall in the firm’s revenue, especially if the price fall is greater compared to company costs. So overall to sum up the investment management practices we can say that In  some corporate finance, investment management is  ensures that a company’s tangible and intangible assets are maintained, accounted for, and  to utilize their highest and best possible use.While on the other hand the risk management explores the range of risks that organizations may be exposed to. Many companies have not only managed themselves to the main financial risks but also to the other risks which may indirectly impact on the finances of organizations – such as operational, reputational and legal and regulatory risk.

 There is, however, no ‘one size fits all’ way of implementing financial risk management. Instead the process must be modified to fit the size, complexity, industry competition and environmental uncertainty facing the organization. Firms may have small exposures to the individual risks, but when these are aggregated they may have, in total, substantial financial and non-financial risks that require careful management.