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The OTC market is the stock market's version of "for sale by owner" (over the counter). It's an alternative to trading stocks, bonds, and other financial products on a public stock market like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).

The potential to get in on the ground floor of a hot stock is one of the benefits of investing in OTC securities. Because OTC investments are generally less expensive than their public market counterparts, you get more bang for your buck. There are, however, other aspects to consider when dealing OTC securities. Let's look at the fundamentals of OTC investment.

What exactly is OTC stand for?

OTC markets are electronic networks that allow two parties to trade without the involvement of a third party, such as a dealer-broker. They're referred to as dealer networks or markets. On the other hand, stock market are auction marketplaces. Following the announcement of a stock's price (the "ask"), investors fight for it by making bids.

Companies that trade over-the-counter are considered public, yet they are not listed. This means that their stock can be bought and sold on the open market, but not on a major exchange such as the NYSE or Nasdaq. As a result, these equities are subject to the same rules and restrictions that these exchanges apply to their listed corporations. To put it another way, no one from the government is watching them.

What kind of investments are traded over-the-counter?

Many OTC equities are stocks issued by tiny businesses that don't meet the requirements to be listed on major exchanges because they don't trade enough shares or sell for less than a particular price. Penny stocks are equities that trade for a very little sum of money.

Other OTC firms are larger, but they cannot (or will not) pay the major exchanges' listing fees. If a company qualifies for listing, it must pay a substantial fee to the exchange.

Most bonds are exchanged over-the-counter after their initial issuance (OTC). OTC markets are a better fit for bonds than stock exchanges because of the large volume of deals, the volume of bonds traded, and the infrequent trading of bonds.

• Derivatives include private contracts between two parties, typically arranged through the aid of a broker.
• Options, forwards, futures, and other contracts with a value determined by the value of an underlying asset
• Currency exchange rates
• Ethereum and Bitcoin are examples of cryptocurrencies.

Price Transparency Issues in OTC Trading - Risks As previously stated, a seller may charge one buyer one price for a security and another buyer a different price for the same security.

• Liquidity Issues - Because OTC equities are thinly traded, there isn't much demand for them. This makes it more difficult to sell them when the time comes.
• 
  
• Volatility - OTC equities may experience substantial price swings due to their low trading volume.
• 
  
• Lack of Regulation - OTC trading may be less regulated than big exchanges, depending on the market or OTC network you choose to trade on.

Conclusion

As previously stated, there are numerous hazards associated with OTC trading. Because all of India's standardised security markets are regulated by SEBI, they are more secure and reliable. Trading or investing should always be done using defined procedures and processes. Be a responsible trader by getting research-based trade recommendations.

Good luck with your investments!

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Benchmark indices ended higher on January with Nifty retesting 18000 led by the PSU Bank, IT, Auto, Capital Goods, Power stocks.

At close, the Sensex was up 650.98 points or 1.09% at 60,395.63, and the Nifty was up 190.60 points or 1.07% at 18,003.30. About 2472 shares have advanced, 948 shares declined, and 88 shares are unchanged.

UPL, Hero MotoCorp, Titan Company, SBI and Maruti Suzuki were among the top Nifty gainers. Losers were Wipro, Nestle, Divis Labs, Asian Paints and Power Grid Corp.

All the sectoral indices ended in the green with PSU Bank, IT, Auto, Capital Goods, Power, Bank, Realty indices up 1-3 percent. BSE midcap and smallcap indices were up 0.7-1 percent. 

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Topic :- Time:3.00 PM

Nifty is likely to end on highly bullish note and has hit our 18000 target already and it is likely to hit 18200 level very soon. 

Nifty spot if manages to hold above 17950 level on closing basis then expect more upmove in coming sessions and if it closes below above mentioned level then some sluggish movemen can follow. Avoid short positions for tomorrow.

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Topic :- Time:2.40 PM

Just In:

Tata-owned BigBasket starts testing delivery model for small towns.

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Topic :- Time:2.30 PM

GOLD Trading View:

GOLD is trading at 47418.If it break and trade below 47300 level then expect quick decline in it and if it manages to trade and sustain above 47440 level then some upmove can follow in it.

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Topic :- Time:2.20 PM

Just In:

South Koreas SsangYong Motor sold for $255 million to local consortium

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Topic :- Time:2.10 PM

Just In:

Decision on overseas listing rules delayed

Legislative amendments to allow Indian entities to list directly overseas may be further delayed as the government is still in talks with stakeholders, including industry leaders, said Anurag Jain, secretary, department for promotion of industry and internal trade (DPIIT), at a virtual media call on Sunday.

On the possibility of the new rules being announced in the Union Budget 2022-23, he said: I dont think it can be resolved that quickly.

For long, startups have been requesting the Centre to amend rules that would allow companies to directly list overseas. Venture capital and private equity firms had also raised the issue a recent meeting with Prime Minister Narendra Modi.

According to existing rules, Indian companies cannot list on foreign exchanges directly if they are not listed on domestic stock exchanges.

Many startups, including food delivery major Zomato and digital payments giant Paytm, went public in 2021. 2022 is expected to witness more public listings of Indian startups both on domestic and global bourses. On Sunday, Jain was briefing the media on the Startup India Innovation Week, starting 10 January. The event is being organized by the DPIIT.

The government seeks to encourage entrepreneurs, investors, incubators, financiers, and policymakers, and national and international stakeholders to celebrate entrepreneurship, and help startups innovate and contribute to Indias growth, Jain said.

Trade and commerce minister Piyush Goyal will chair a roundtable of global venture capital funds on 13 January, while Modi will interact with startups on 15 January through video conference at a closed-door event.

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Topic :- Time:2.00 PM

Nifty is still going strong. Nifty spot if manages to trade and sustain above 17980 level then expect some further upmove in the market and if it breaks and trade below 17960 level then some decline can be seen in the Nifty.

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Topic :- Time:1.45 PM

Just In:

Paytm sinks to record low.

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Topic :- Time:1.10 PM

Nifty is trading at 17962.If it manages to trade and sustain above 17980 level then expect some upmove and if it breaks and trade below 17940 level then some decline can follow in the market.

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Topic :- Time:12.30 PM

COPPER Trading View:

COPPER is trading at 739.30.If it manages to hold above 736 level then expect it to rise till 744-745 levels quite soon. Buy on every decline till it holds above 736 is recommended in it.

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Topic :- Time:12.00 PM

After gap up opening nifty is still going strong and is trading 110 points higher from its previous close. Nifty spot if manages to trade and sustain above 17940 level then expect some further upmove and if it breaks and trade below 17900 level then some decline can follow in the market.

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Topic :- Stocks under F&O Ban on NSE

1. Delta Corp

2. RBL Bank

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Topic :- Stocks in News

Tata Steel: The company increased stake in Medica TS Hospital (MTSHPL), a joint venture company, from 26 percent to 51 percent.

Gulshan Polyols: The company has received, signed and executed a Long Term Offtake Agreement, for setting up of upcoming standalone dedicated ethanol plant of 250 KLPD at Industrial Growth Centre, Matia, Goalpara and 500 KLPD (kiloliters per day) at MPAKVN Industrial Area, Borgaon, Madhya Pradesh.

Dilip Buildcon: Subsidiary Sannur Bikarnakette Highways Private Limited has received the financial closure letter from the National Highways Authority of India, for four Laning of Sannur to Bikarnakette section of NH-769 under Bharathmala Pariyojana on Hybrid Annuity Mode in Karnataka.

Sobha: The company reported sales volume of 13,22,684 square feet of super built-up area valued at Rs 1,047.5 crore in Q3FY22, up from sales volume of 11,33,574 square feet of super built-up area valued at Rs 887.6 crore in Q3FY21. Sobha share of sale value stood at Rs 908.2 crore during the quarter, up from Rs 677.7 crore in same quarter last year.

Cyient: Aditya Birla Sun Life AMC sold 21.16 lakh equity shares in the company via open market transactions on January 6, reducing shareholding to 33.93 lakh shares from 56.1 lakh shares earlier.

Avenue Supermarts: The company reported 24.6 percent higher standalone profit at Rs 586 crore, and 22 percent higher revenue at Rs 9,065 crore in Q3FY22, YoY.

CSB Bank: C VR Rajendran decided to take early retirement from the post of MD & CEO and to continue leading the bank till March 31, 2022.

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Topic :- Results on January 10

5paisa Capital, Ganga Papers India, GI Engineering Solutions, GNA Axles, Thambbi Modern Spinning Mills, and Vikas Lifecare will release their quarterly earnings on January 10.

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Topic :- Indian Stock Market Opening View

Intraday Trading View For 10 Jan,2022:

Rising covid1-19 cases and lockdown rumors to be eyed. Nifty will remain volatile throughout the week. We can see more upmove in this month. Nifty is likely to move towards 18000-18200 levels in short term.

For Today:

Nifty spot if manages to trade and sustain above 17840 level then some upmove can be seen in the market and if it breaks and trade below 17780 level then some decline can be seen in the market. Please note this is just opening  view and should not be considered as the view for the whole day.

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In a blog published Monday, the IMF said it expected robust US growth to continue, with inflation likely to moderate later in the year. The global lender is due to release fresh global economic forecasts on January 25.

Emerging economies must prepare for US interest rate hikes, the International Monetary Fund said, warning that faster than expected Federal Reserve moves could rattle financial markets and trigger capital outflows and currency depreciation abroad.

In a blog published Monday, the IMF said it expected robust US growth to continue, with inflation likely to moderate later in the year. The global lender is due to release fresh global economic forecasts on January 25.

It said a gradual, well-telegraphed tightening of US monetary policy would likely have little impact on emerging markets, with foreign demand offsetting the impact of rising financing costs.

But broad-based US wage inflation or sustained supply bottlenecks could boost prices more than anticipated and fuel expectations for more rapid inflation, triggering faster rate hikes by the US central bank.

"Emerging economies should prepare for potential bouts of economic turbulence," the IMF said, citing the risks posed by faster-than-expected Fed rate hikes and the resurgent pandemic.

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St. Louis Fed President James Bullard this week said the Fed could raise interest rates as soon as March, months earlier than previously expected, and is now in a "good position" to take even more aggressive steps against inflation, as needed.

"Faster Fed rate increases could rattle financial markets and tighten financial conditions globally. These developments could come with a slowing of US demand and trade and may lead to capital outflows and currency depreciation in emerging markets," senior IMF officials wrote in the blog.

It said emerging markets with high public and private debt, foreign exchange exposures, and lower current-account balances had already seen larger movements of their currencies relative to the US dollar.The fund said emerging markets with stronger inflation pressures or weaker institutions should act swiftly to let currencies depreciate and raise benchmark interest rates.It urged central banks to clearly and consistently communicate their plans to tighten policy, and said countries with high levels of debt denominated in foreign currencies should look to hedge their exposures where feasible.

Governments could also announce plans to boost fiscal resources by gradually increasing tax revenues, implementing pension and subsidy overhauls, or other measures, it added.