Stocks to watch out for in this bear market - 3

Sesa Goa:

India’s biggest non- state iron-ore exporter, Sesa Goa had posted excellent results for the quarter ended June 2008 on 22^nd of this month. It’s the biggest advance in six months. Higher profits are on the account of higher sales of the steelmaking material and metallurgical coke.

The company said its net profit for the quarter rose to 6.3 billion rupees from 1.31 billion for the corresponding period a year earlier, while total revenue rose to 13.4 billion rupees from 5.3 billion rupees.

Earnings from iron ore in the quarter ended June rose 43 percent to $90 a ton and gains from coke, used to fire blast furnaces, doubled to $500 a ton.Sesa Goa can continue good growth rate as the global steel prices are soaring at the moment and it has very good market world wide. Read more

July 26, 2008 | Filed Under Stocks | Leave a Comment

Indian Markets Next week July 28th 2008

As expected the United Progressive Alliance got through the vote of confidence in the parliament. This news along with some support of global factors boosted the markets to a recent high of around 15,000. But it could not maintain the winning streak on last couple of days of the week on the expectations of further bank write downs in U.S. and profit booking at higher levels.

Inflation for the first time since May eased marginally. The inflation figure for the week ended July 12^th recorded at 11.89 per cent. This slight decrease in inflation came from moderation of some food items like sea fish, imported edible oils and tea.

On Friday July25th oil prices fell sharply dropping at times below $123 for the first time in weeks. Read more

July 26, 2008 | Filed Under Market Analysis | Leave a Comment

STP-Straight Through Processing

STP, short form of Straight Through Processing, means an efficient use of computers and technology for end-to-end processing of financial transactions. It includes different stages like Trading, Clearing and Settlement of instruments in capital markets without human intervention.

With the introduction of STP Read more

July 26, 2008 | Filed Under Stocks | Leave a Comment

Indian Markets Next week July 21st 2008

Manmohan Singh government is going to face vote of confidence on July 22^nd. A today special session of parliament is held on 21^st and 22^nd of July for this. Mostly it will get through the vote of confidence. If it won’t it will affect markets badly.

Markets pulled back sharply in the last two trading sessions in the previous week. Especially badly beaten Bankex outperformed Sensex on those two days. Important resistance levels are crossed. Crude oil for August delivery settled lower at $US128.88 a barrel on the New York Mercantile Exchange. A week ago, Nymex crude touched a record trading high of $US147.27 a barrel, before settling at $US145.08. In the last week, it has fallen by $US16.20, or 11.2 per cent. The short term is looking okay now but medium and long term stories are still dependent on global factors. Read more

July 20, 2008 | Filed Under Market Analysis | Leave a Comment

Calculations involved in Repo and Reverse Repo

A repo transaction involves two legs of calculation. The first one is when cash and securities are borrowed and the second one is when they are returned at the end of the term.

If a security pays a coupon during the term of the repo, the coupon should be appropriately distributed between the two parties because the lender of the securities held them all these days and deserves the major portion of it.

Considering the above fact the settlement amount on the first leg involves the following two components.