NTPC - sensex stocks 4

National Thermal Power Corporation Ltd(NTPC):

Key data:

Industry: Power generation and distribution
No of shares: 8,245,464,400
Face value: Rs 10
BSE code: 532555
NSE code: NTPC
Chairman & Managing Director: R. S. Sharma

Share holding pattern (as on 30th June 2008):

Promoters: 89.5%
Foreign & Institutional investors: 6.68%
Public & others: 3.82%

NTPC is the largest power company in India set up in 1975. NTPC occupied 411th place in forbes list of World’s 2000 Largest Companies for the year 2007. NTPC total installed capacity is 29,394 MW. Out of which 23,395 MW is being generated by 15 coal based poer stations, 3,955 MW is being generated by gas based power stations and 1,794 MW is being generated under joint venture.

NTPC has been listed in major stock exchanges of India in November 2004 with Government holding 89.5% of the equity share capital and rest held by Institutional Investors and Public.

NTPC plans to be a 75,000 MW company by 2017.

Other Information:

Latest NTPC share price
Latest NTPC quarter results

References.

NTPC Ltd
NTPC Ltd from wikipedia

August 17, 2008 | Filed Under Stock Research | Leave a Comment

Indian Markets Next week August 18th 2008

Sensex closed at 14,725, down 443 points from the previous weekend figure. It lost 370 points on the last trading session of the week, Thursday. Securities and Exchange Commission, SEC banned naked short selling on 19 financial stocks saying that “It would protect the normal price discovery process". As a result US markets didn’t fall as expected. But the guess is the prices will fall again once they are out of ban from short selling.

Wholesale Price Index (WPI) based inflation rose to a 13 year high of 12.44 % for the week ended August 2nd. This time fruit and fuel prices added oil to the burning inflation. The inflation rate is expected to be in double digit for the remaining calendar year as the fiscal measures taken by the Government will yield result only in December.

Spot crude oil price closed around $114 a barrel. It touched recent lows in the previous week. Crude oil’s 23 percent retreat since a July record of $147.27 a barrel along with naked short selling has driven a four-week rebound in U.S. stocks.

Markets are expected to volatile in this week. They may fall, if not a complete collapse at least few hundred points of Sensex. Industrial growth arte is expected to come down for this financial year.
rrel has driven a four-week rebound in U.S. stocks.

August 16, 2008 | Filed Under Market Analysis | Leave a Comment

Risk Management in Settlement System/Different types of settlement risks

An efficient settlement system mitigates all risks inherent in the settlement system. It constantly monitors and enhances risk measures to pre-empt market failures. It tracks the record and performance of members and their net worth. It monitors members’ exposures and collects margins and disables the license of members if the limits are breached.

There are two types of risks involved in the settlement system

Counter Party Risk
Systematic Risk

Counter Party Risk: It arises when a member doesn’t discharge his/her obligations fully in time or any time thereafter. This leads to two risks – replacement cost risk prior to settlement and principal risk at the time of settlement.

Replacement cost risk: When one of the parties of the transaction fail to deliver their obligations, the non-defaulting party tries to replace the original transaction for his client at current market price. So he loses the profit, that would have accumulated between the date of original transaction and date of replacement transaction, had the counter party would not have defaulted, but not the principal because by that time he has not delivered his obligations. It can be reduced by reducing time gap between trading and settlement and by legally binding netting systems. Read more

August 16, 2008 | Filed Under Stocks | Leave a Comment

Over The Counter (OTC) Market – Overview

Over The Counter Market (OTC) is not a centralized system for order matching and execution. It’s basically a network of telephones and computers. The main participants in OTC markets are dealers and brokerage firms. These dealers are also called ‘market makers’ and specialize in trading particular types of securities. They have their own inventory of securities which they deal with. They buy and sell securities of the same company and thus create market. They give two way quotes i.e. bid as well as offer.

Brokerage firms which receive instructions from their clients approach dealers for executing their clients’ orders. Brokerage firms receive bid-offer quotes from more than one dealer and best deal is executed.

Mainly the securities of medium to small size companies which are not listed on the stock exchanges are traded in OTC market. Some securities which are listed on exchanges are also traded.

Broker - Dealer: Broker – Dealer is a firm or a person who acts as a broker as well as a dealer either in the same security or in different securities.

Forex market, Debt market and Forward markets are examples of OTC market.

August 16, 2008 | Filed Under Stocks | Leave a Comment

Difference between Over The Counter (OTC) and Exchange Traded Markets

Counter Party Risk is more in OTC markets. In an exchange traded market the exchange or the regulatory becomes the counter part to every transaction and delivery of securities/funds is guaranteed whereas in OTC market this is not the case and counter party risk exists.

Best Price Discovery in Exchange traded markets as there are number of traders who trade on a single and centralized system. So there will be less chances of manipulation by operators whereas in OTC markets it depends on the number of dealers (market makers) who trade in a particular security.

Less Liquidity in OTC market as there are less number of clients and participants. In Exchange traded market there will be buyers and sellers in almost all counters.

Absence of proper regulatory body in OTC markets. All firms that offer exchange traded products must be members and register with the exchange, there is greater regulatory oversight which can make exchange traded markets a much safer place for individuals to trade

August 16, 2008 | Filed Under Stocks | Leave a Comment

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