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The country's largest power generator, NTPC, is seeking a partner to help it plan the initial public offering (IPO) of its renewable energy subsidiary National Renewable Energy Lab (NREL).
According to officials aware of the developments. It will start looking for a partner from April 2022, which would help increase the value of its IPO. Although other SME-IPOs are lined up in 2022, the spark of issuing NTPC’s IPO is different from other IPOs.
The reason could be the popularity of NTPC as it is counted as India’s dominant power major with a presence in the entire value chain of power generating business.
If we look into the stock market research, India is the third-largest country that emits greenhouse gases (GHG) globally.
That affects its climate and threatens to reverse the development gains made in recent years. NTPC Seeks renewable units to produce 40 per cent of its total power from non-fossil fuels by 2030.
NREL has doubled its target for clean power generation to 60 gigawatts by 2032.
Experts recommend that NREL bear significant equity money to meet the target, and bringing investors on board would be beneficial.
NTPC is India's most significant power utility with an introduced limit of 67,907.5 MW. It plans to turn into a 130 GW company by 2032. NTPC was established in 1975. NTPC aims to be the world's biggest and best power major.
NTPC has exhaustive Rehabilitation and Resettlement and CSR arrangements incorporated with its core business of setting up power projects and generating power.
NTPC focuses on creating dependable power at cutthroat costs in a supportable way by upgrading the utilization of various energy sources with imaginative eco-accommodating advancements.
Subsequently, NTPC adds to the country's monetary improvement and upliftment of the general public.
NTPC is very much situated to benefit from the predictable incomes generated by thermal assets and the development of sustainable power.
An AP/BV proportion of 1.5x for warm ventures brings about a valuation of Rs. 133,000 crore (close to current market capitalization) and no incentive for huge renewable energy (RE) growth plans.
Aside from settling ESG issues, NTPC hopes to market >5GW each year to deliver an 11 per cent CAGR in independent directed values.
RE limit focuses of 15GW/60GW by FY24E/FY32E (NTPC won 15% of RE offers in FY21) would make extensive worth.
The current installed capacity of NTPC?
The company's installed capacity is 67,907.5 MW (which includes JVs) 7 gas-based, own stations include 24 coal-based, 1 Wind 13 Solar, 1 Hydro, and 1 Small hydro plant.
Under the Joint Venture, NTPC has 9 coal-based, 13 renewable energy projects, and 4 gas-based Projects.
Is it reasonable to buy NTPC stock in 2022?
We are happy to say that the Indian stock market is currently trading at a very low price to its intrinsic value. Sooner or later, people will realize the fact that power stocks like NTPC are like annuity income for a long-term investor.
If one buys PNB or Bank of Baroda with a one-year time horizon, the investors will make a lot of money. I would still advise people to hold on to their stocks until the market comes down and then buy some more for the long term.
What is the Market Cap of NTPC?
NTPC, composed in the year 1975, is a large-cap company with a market cap of Rs 117475.11 Crore and is operating in the power sector.
Several well-known global companies, including energy companies, public companies and pension funds, have made significant contributions to India's renewable energy sector. The government wants more international companies to participate in achieving the clean energy goal.
प्रमुख केंद्रीय बैंकों द्वारा इस सप्ताह अपनी संबंधित बैठकों में अपनी मौद्रिक नीतियों को सख्त करने के बाद कीमती धातुओं में तेज़ी रही और सोने के भाव एक महीने की उचाई पर पहुंच गए। डॉलर जो आम तौर पर सोने के विपरीत चलता है, अमेरिकी फेड और यूरोपियन सेंट्रल बैंक द्वारा अपने कोविड-19 आर्थिक प्रोत्साहन को वापस लेने के बाद फिसल गया।
पिछले सप्ताह सोना 1 प्रतिशत और चांदी 1.7 प्रतिशत तेज़ हुई है। प्रमुख केंद्रीय बैंक उच्च मुद्रास्फीति को नियंत्रित करने के लिए मौद्रिक नीतियों को सख्त कर रहे हैं, साथ ही ओमीक्रॉन कोवीड-19 संस्करण के प्रभाव पर भी नजर रख रहे हैं।
मौद्रिक नीति में सख्ती सोने और चांदी के भाव के लिए नकारात्मक प्रभाव देता है, लेकिन बाज़ारो ने इस खबर को पहले ही भुना लिया था जिसके कारण कीमती धातुओं में तेज़ी रही और डॉलर इंडेक्स में दबाव बना। अमेरिकी फेड के साथ यूरोपियन सेंट्रल बैंक ने भी कोवीड राहत पैकेज में मार्च तक कटौती करने को कहा है।
इस बीच, यूरोपीय सेंट्रल बैंक ने 6 महीनो के लिए नियमित मासिक बांड-खरीद को बढ़ावा दिया जिससे कीमती धातुओं में तेज़ी रही। जबकि फेड द्वारा मार्च 2022 मे 0.75 प्रतिशत ब्याज दर बढ़ाने की योजना है। बैंक ऑफ़ इंग्लैंड ने अपनी ब्याज दरों में 0. 25 प्रतिशत की वृद्धि कर दी है।
जबकि बैंक ऑफ़ जापान ने सरल मौद्रिक नीति रखने के साथ आपातकालीन कोवीड -19 फण्ड को घटाने के सन्देश दिए है। केंद्रीय बैंकों के सख्त मौद्रिक नीति के आत्मविश्वाश से कच्चे तेल का रुझान पिछले सप्ताह तेज़ी का रहा और अमेरिका से बेरोज़गारी दावे के आकड़ो में बढ़ोतरी दर्ज की गई जिसके कारण सोने और चांदी के भाव को सपोर्ट रहा है।
इस सप्ताह सोने और चांदी के भाव पर बुधवार को अमेरिका से जारी होने वाले कंस्यूमर कॉन्फिडेंस और गुरुवार को कोर पीसीई प्राइस इंडेक्स के आकड़ो का प्रभाव रहेगा।
इस सप्ताह सोने और चांदी के भाव में निचले स्तरों पर सपोर्ट रह सकता है। सोने में 48200 रुपये पर सपोर्ट और 49000 रुपये पर प्रतिरोध है। चांदी में 61400 रुपये पर सपोर्ट और 63000 रुपये पर प्रतिरोध है।
In December, CMS Info Systems Limited IPO was listed. Incorporated in 2008, CMS Info Systems Limited is India's largest cash management company in terms of the number of ATM points and retail pick-up points as of March 31, 2021.
The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail as well as e-commerce companies in India.
In the first place, CMS integrated business platform is supported by customized technology and process controls.
In addition CMS enables it to offer its customers a wide range of tailored cash management and managed services solution.
The Company caters to a broad set of outsourcing requirements for banks, financial institutions, organized retail as well as e-commerce companies in India.
firstly, the demand for cash and cash related services in India has increased, banks and other participants in India are increasingly outsourcing their ATM operations and management.
Secondly, As of August 31, 2021, it has a network of 3,965 cash vans , 238 branches , offices to cover all of India's states , union territories and covering 97.04% of India’s 742 districts, 14,949, or 77.46%, Indian postal codes.
At last the revenue of the cash management market in India grew from approximately ₹10.0 billion in the Fiscal Year 2010 to approximately ₹27.7 billion in the Fiscal Year 2021, a CAGR of 10.88%
Despite consistent growth in revenues, we saw a decline in FY21 which can be attributed to COVID-19. According to the company, the revenue in FY20 was Rs. 1388.29 Crores and fell to Rs 1321.92 crore in FY21.
However, the company has improved its net profit from Rs. 134.7 crore in FY 20 to Rs. 168.52 crore in FY 2021. Also the company has stable financial performance and increasing margins.
In the first place, the risk of market volatility needs to be considered right now on the back of rising cases from the omicron variant.
As the government focuses on digital payments, a further decrease in the use and availability of cash can have an adverse effect on business activities.
The IPO is priced at a PE of 19x to its FY21 EPS of Rs 11.09 and a P/BV of 3.24x on the NAV of Rs 66.52, which is in line with its listed peers. Thus we assign an "Avoid" rating to the IPO.
Investing in stocks is not just about growing your personal wealth; it also plays a crucial role in supporting and enhancing the broader economy. Here’s how investing in stocks contributes to economic growth and development:
When investors buy shares of a company, they provide it with the capital needed to expand its operations, develop new products, or enter new markets. This process of capital formation helps businesses grow and innovate, which can lead to increased productivity and economic growth.
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As companies receive investment through the sale of stocks, they often use these funds to hire more employees, expand facilities, or increase production. This directly contributes to job creation and reduces unemployment.
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Investment in stocks allows companies to fund research and development (R&D) activities. This funding supports innovation and technological advancements, which can drive economic growth and improve living standards.
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Stock markets provide a platform for buying and selling shares, which enhances market liquidity. Liquidity refers to how easily assets can be bought or sold without affecting their price. High liquidity in the stock market facilitates efficient capital allocation and investment.
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Investing in stocks can lead to wealth creation for individuals. When investors see their investments grow, they may have more disposable income to spend on goods and services, which boosts consumer spending and stimulates economic activity.
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The potential for capital appreciation and dividends encourages people to invest rather than keep their money in savings accounts. Increased investment in stocks can lead to higher levels of savings, which provides more capital for businesses and contributes to economic stability.
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Stock markets generate revenue for governments through taxes on capital gains and corporate profits. This revenue can be used for public services, infrastructure projects, and other economic development initiatives.
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A well-functioning stock market attracts both domestic and international investors. Confidence in the stock market can lead to increased investment flows, which support economic stability and growth.
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Stock markets can help in the distribution of wealth by providing investment opportunities to a wide range of people. This can reduce income inequality and contribute to a more balanced economic growth.
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Investing in stocks is integral to the functioning of a healthy economy. It supports capital formation, job creation, innovation, and market liquidity. By encouraging savings and investment, providing government revenue, and building investor confidence, stock markets play a vital role in economic growth and stability. Understanding these contributions helps investors appreciate the broader impact of their financial decisions on the economy.
Today in this blog we will discuss what is Open-high and Open-low Strategies in Intraday Trading.
In India, people often choose to trade in the stock market trading whether it is long term or short term. This is because it allows them to uplift their wealth to an upper level.
As per the new economic survey, it has been found that the participation of the retail sector in the stock market is rising as the number of investors in the stock market has grown up by a whopping 142 Lakh in FY 21. It has also been recorded that new accounts have opened up with 122. 5 Lakh new accounts in CDSL and 19.7 Lakh in NSDL.
If we talk about trading in India, then Intraday trading is something that is considered one of the most challenging yet electrifying forms of share market trading. Also, many traders prefer intraday trading over others because they find it the best way to achieve profit within one trading day.
To book profits within a single day, traders use numerous tools such as charts and patterns to measure stock’s performance and make decisions based on them. In addition, they also grasp some strategies to gauge the performance of their scripts.
Although traders use different strategies to book profit from day trading, open high and open-low strategy is often used by intraday traders. In this blog, we will uncover the pivotal points of intraday trading:
When any stock or index has the same value, then Open-High Open-low Strategy is the one wherein a buy signal is generated. This indicates that traders buy stocks in large quantities. Contrary to this, a selling signal is generated when the value of a stock or index remains the same for open and high. Here, a selling signal indicates that it's high time traders should sell their stocks.
Intraday trading makes sure that all the positions are squared off before the market closes and hence no changes in the management of shares. This indicates that the money flows throughout the market in the form of shares and when the market closes, the shares are withdrawn.
Open-High, Open-Low Strategy isn’t simple as it seems to be.
The NIFTY 50 Index reflects approximately 10% of the free-float market capitalization of NSE-listed stocks. This will help you choose the best sector to invest in and pull stocks out of the market at the right time.
Stock Chart Analysis (Long-Term)
The OHL feature helps traders to analyze the stock charts. With a detailed analysis of the stock charts, traders get an idea of where to buy or sell a stock. Many traders do trading against the trend of a stock. Hence it is recommended that the newbies should avoid trading against a stock’s trend.
To get a detailed insight into stock chart analysis, go for stock market learning.
In general, the risk/reward ratio of OHL strategies is high and traders use this intraday trading method to set a "stop-loss"; near the strike price. If the stock's opening price is low, traders usually set the stop loss to the low of the opening candle for 15 minutes.
Traders who choose the Open Hi-Lo strategy can more accurately assess equity trends. This allows you to make investment decisions more efficiently. Traders can put specific stocks on their watchlists and decide when to invest. This allows them to choose the best sector to invest their money in.
During intraday trading, traders are required to trade in the shares that have high trading volume. Stocks that have high trading volume uplift traders’ confidence to an upper level.
Individuals find it easy to trade in the stock only if the closing price of the first candle is lower than the closing price of the second candle.
While trading in stocks, intraday traders need to ensure that the risk-reward ratio should be minimum. Trade analysts consider that 1:2 is the optimal ratio as risk-reward.
Traders who are seeking the OHL strategy find entering long or short positions can make a range breakout.
Open-high and Open-low strategies are some of the favored strategies that many experienced traders regularly use.
On the other hand, if you are a beginner who wants to trade intraday, should opt for a reputed stockbroking firm with masterful stock market research and advisory services.
Inflation is the rise in the general level of prices of goods and services in an economy over time. It impacts the purchasing power of money — meaning ₹100 today might not buy you the same amount of goods next year. Inflation is a key factor in economic decision-making, from setting interest rates to determining wage growth.
Parle-G Biscuits: A pack of Parle-G biscuits cost ₹4 in 2000. In 2023, it cost ₹10. This increase in price is due to inflation.
Inflation is primarily measured using two indexes in India:
In India, inflation rates have fluctuated in recent years due to various factors, including the pandemic, supply chain disruptions, and global oil price volatility.
Year CPI Inflation Rate (%)
2020 6.2
2021 5.1
2022 6.7
2023 4.6 (estimated)
Demand-pull inflation occurs when aggregate demand in the economy exceeds the available supply of goods and services. This can happen due to various factors, such as:
Cost-push inflation occurs when the cost of production increases, leading businesses to raise prices to maintain profit margins. Common causes of cost-push inflation include:
Built-in inflation, also known as inflationary expectations, occurs when people anticipate future inflation and adjust their behavior accordingly. This can create a self-fulfilling prophecy, as businesses and workers may demand higher wages and prices to compensate for expected inflation.
Inflation affects various sectors in India differently:
Moderate inflation is considered beneficial for economic growth, while too much inflation can lead to instability.
Low Inflation (1-4%) Stable economy, growth, debt relief
High Inflation (5-8%) Rising costs, pressure on households
Hyperinflation Economic collapse, loss of savings value
Inflation plays a significant role in shaping India’s economy. While moderate inflation is a sign of healthy growth, high inflation can cause financial strain on consumers and businesses. By understanding how inflation works, you can make better decisions in managing your investments, savings, and loans in the Indian market.
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