Data on top 20 dividend paying companies show that for the financial year ended March 2008, nearly Rs 18,000 crore have been handed over to their shareholders. Of these, the top five PSU and private corporate houses have distributed about Rs 9,000 crore and Rs 6,000 crore respectively. Since under the current tax rules, dividends are tax-free in the hands of the receiver, market players say this is a real wealth in the hands of investors.
Despite rising interest rates and input costs, most of the leading corporates have declared strong quarterly and annual numbers. The buoyancy in their performance and confident business outlook have allowed a large number of companies to be generous with dividend distribution, running into thousands of crores, market players said.
Among the PSUs, it is the navaratna companies which have given handsome dividends, which in a major way filled up the government’s coffers, other than paying its non-government shareholders. And among the private companies and corporate houses, other than the traditional frontline entities like Reliance (Mukesh Ambani and ADAG) groups, Tatas, Birlas and ITC, the Indiabulls group stands out for its huge payout to its shareholders. The group’s total payout of Rs 731 crore for financial year 2007-08 is about 60% of its full year net profit.
In a bad market, handsome dividend payouts by companies also attract those investors who look for high dividend yield stocks. Dividend yield is calculated as the total yearly dividend payout divided by the current market price. Some investors believe high dividend yield stocks would continue to pay higher dividend during the current year as well and hence the extra interest in the stock.
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Time changes and with every passing day graphs of stock market changes which in turn changes the portfolio of investor. Like recent fall in Indian stock market
has ruined the portfolio of investors
who were invested in Nse and Bse
listed scripts. They have lost around say 60% of there money. But now once again after that correction in stock market Nifty and Sensex has picked up momentum. But
we again warns all investors that don’t be too over tempted by this rise as its just a minor upmove. Until Nifty doesn’t close above 5300 for 3-4 sessions we are not at all bullish in market. So invest in market for short term or prefer day trading commonly known as Intraday trading.
Apart from it rising price of Crude oil, Rising Inflation is a matter of concern. Though dollar is becoming stronger that will boost IT sector and Exporters.
All in all we suggest be in Indian stock market and if you are investor invest with the proper strategies like go Long for maximum 1 week that too with proper stoploss and target.
If you are day trader be a strict intraday trader then , clear your goals and trade with strict stoploss and target if you want to earn.