India’s two-horse battle between rivals, Bombay Stock Exchange and the National Stock Exchange, saw the NSE extend its discount on commission fees. The move highlights the growing interest in rupee derivatives as participants expect stability in the Indian rupee under the new government.

The NSE retaliated against ths BSE’s notification at the end January by extending its concession on currency futures and equity options. In a circular sent out to members the venue confirmed its enhanced rate reduction, stating that the NSE has decided “to extend the same for a further period of two months i.e. from February 1, 2015 till March 31, 2015.”

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The multi-asset trading venue introduced discounted rates in November 2014 for the two financial instruments. These were applicable from December 1 and continue till January 31, 2015.

Indian authorities sanctioned currency futures in 2008 as part of the country’s plan to liberalise its currency and support corporates in managing their currency risk.

The billion plus nation has been a magnet for forex providers looking to capture the market. India plays well as an emerging market destination due to its vast internet connectivity, local established financial trading environment, with over 20 million registered share investors and strong command of the English language. Since Alpari exited the Indian market no single provider has been able to dominate the market.

Saumya Basu, CEO of MC Broking, explained to Forex Magnates: “The entrance of BSE to the forex trading space bought a lot of confidence to the marketplace, as one of the oldest and most liquid exchanges a lot of its equities only traders are diversifying into FX.”

The Indian rupee was under fire in 2013 as the Fed’s QE programme put EM currencies under pressure, however, under the new government all signs lead to India as the next economic powerhouse. Timely reforms under the RBI governor have created a layer of stability, coupled with the a boost of confidence under Prime Minister Modi that India is no longer in the danger zone, as EM faces round two of a potential beating as the dollar strengthens and investors reemerge as depositors in the world’s largest economy.

Shiv Kumar of TNC Markets added: “The rupee is expected to strengthen around the 57-58 mark by mid-March, Indian domestic markets have been hitting a 5-year high and the IMF’s forecast that the South Asian, BRICS nation would become the world’s fastest-growing major economy by 2017, surpassing its rival China is expected to further bolster the economy and consequently the rupee.”