"Bangalore, India - January 29, 2013: Signage at a car showroom belonging to Maruti Suzuki India Ltd. in Bangalore, India. The company is a subsidiary of Japan's Suzuki Motor Corporation, and has been the leader in the Indian car market for two and half decades with a capacity of 1.7 million cars annually."
Here are some of the major updates that could move the markets tomorrow:
Maruti Suzuki plans total capex of ₹1.25 lakh crore till 2030-31
Maruti Suzuki India is planning capital expenditure (capex) of up to Rs 1.25 lakh crore until 2030-31. The company’s strategy involves expanding its current product lineup from 17 models to 28 while increasing its production capacity. The automaker aims to have a total production capacity of 40 lakh units annually by 2030-31.
Prepared with business continuity plan for Haifa port: Adani Ports
Adani Ports & Special Economic Zone Ltd (APSEZ) said it is closely monitoring the conflict concentrated in south Israel, whereas its Haifa Port is situated in the north. The overall contribution of Haifa in APSEZ’s numbers is relatively small at 3% of the total cargo volume. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality,” APSEZ’s spokesperson said in a statement.
Inox Green Energy to divest 100% stake in Gujarat wind farm
Inox Green Energy Services (IGESL) has signed a term sheet to sell its 100% stake in Nani Virani Wind Energy Pvt Ltd (NVWEPL) as part of a strategy to become debt-free. NVWEPL owns a 50MW operational wind farm in Gujarat. The wind farm was commissioned in May this year.
ITC Hotels brand ‘Storii’ to set up presence in West Bengal
ITC Hotels announced the signing of its first ‘Storii’ property in Kolkata, West Bengal. The property will be located near the metropolis and is expected to open in early 2024. It will have 30 keys/rooms. ITC Hotels has three ‘Storii’ properties present in Goa and Dharamshala.
Magenta Mobility partners with Tata Motors to deploy EVs
Magenta Mobility has signed a Memorandum of Understanding (MoU) with Tata Motors to deploy 500 Ace EVs for last-mile delivery services. With Tata Motors, Magenta aims to drive sustainability in intra-city logistics in India by reducing the carbon footprint in the last-mile and mid-mile freight segment.
Paytm Payments Services Ltd (PPSL) has introduced an Alternate ID (ALT ID)-based Guest Checkout solution for merchants, enhancing cardholder safety and streamlining transactions. With this solution, customers can make purchases as guests without storing sensitive card information on e-commerce/merchant websites. PPSL is a wholly-owned subsidiary of One97 Communications Ltd (which operates Paytm).
SC to hear Jet Airways lenders’ plea against JKC on Oct 12
The Supreme Court (SC) indicated it would hear the plea by grounded airline Jet Airways’ lenders on October 12. The lenders are challenging the National Company Law Appellate Tribunal’s (NCLAT) order granting Jalan Kalrock Consortium (JKC) more time to make payments to them. JKC is the successful bidder for Jet Airways.
Premium collection falls for life insurers in August
Premiums in the life insurance sector witnessed a drop of 13% year-on-year (YoY) to ₹30,716 crore in September 2023. Life Insurance Corporation’s (LIC) premium collection in September dropped by 27% YoY. The life insurer’s premium collection fell 25% YoY in the first half of FY24. LIC has lost 9.7% market share in the first six months of FY24 over last year.
Tata Steel Ltd’s (TSL) long-term issuer default rating was upgraded to investment grade by Fitch Ratings with a stable outlook, following less uncertainty and financial risk from its UK operations. Fitch Ratings upgraded the issuer default rating from BB+ to BBB -. It also raised the rating on Tata’s $1 billion notes due July 2024 issued by unit ABJA Investment Co. to BBB- from BB+.
Cipla stake sale plan faces hurdle as promoters differ on valuation: Report
According to an ET report, the stake sale plan of Cipla Ltd has come across a hurdle as the promoters are reportedly not aligned with the common valuation. Differences among founders may lead to a delay in the deal until a common consensus is reached over the valuation. Cipla’s promoter group currently controls around 33% of the company’s shares. Reports have said that the family members could sell some or all of their stakes in Cipla.
Here are some of the major updates that could move the markets tomorrow:
Indian govt collects ₹2,642 crore in dividends from IOCL and BPCL
According to the Department of Investment & Public Asset Management (DIPAM), the Indian government has received nearly ₹2,642 crore in dividends from Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Ltd (BPCL). The govt received about ₹2,182 crore and ₹460 crore from IOCL and BPCL, respectively. The Centre expects a 17% higher dividend at ₹48,000 crore from the Reserve Bank of India (RBI), public sector banks, and financial institutions this year.
Tata Consultancy Services (TCS) has partnered with Dassault Systems for digital transformation in cardiovascular science through bio-physical simulation. TCS will also collaborate with Dassault and others towards the goal of a Virtual Human Twin. The IT major will contribute its domain, technology expertise, and research on the Digital biophysics-based BioTwin of the heart.
ITC Limited has entered the dairy business in Jharkhand with the launch of various products under its ‘Aashirvaad Svasti’ brand. The company will offer a variety of dairy products like milk, curd, paneer, lassi and sweet curd to the state’s consumers. The Aashirvaad Svasti dairy products will be available across 2,000 general and modern trade outlets across Jharkhand.
India’s PV sales rise to highest-ever level in August
According to the Society of Indian Automobile Manufacturers (SIAM), the sale of passenger vehicles in India increased to an all-time in August. The record is a result of robust demand for sports utility vehicles. However, wholesale volumes of entry cars and motorcycles remained weak. In August, 359,228 passenger vehicles were sold, an increase of 9.4% YoY.
Essar Group, Desert Tech sign pact for green steel solutions in Saudi Arabia
Essar Group and Desert Technologies have signed a Memorandum of Understanding (MoU) to develop solutions and storage for Essar Group’s Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA). The partnership will help Essar Group access green energy and carbon-free energy storage solutions in Saudi Arabia. The Essar project is set to be the region’s first green steel project.
Motilal Oswal Financial Services has acquired a standalone commercial tower in Ahmedabad from Claris Life Sciences for an undisclosed sum. The tower has 12 upper floors spread over nearly 110,000 sq ft in the financial hub of Ahmedabad. The property spread over 0.56 acres will house Motilal Oswal Tower. The company expects the construction of the project to be completed by September 2024.
HFCL Ltd and its subsidiary HTL Ltd have secured a contract worth approximately ₹82.60 crore for supplying high-quality optical fibre cables to one of India’s leading domestic telecom service providers. The purchase orders require HFCL and HTL Ltd to execute the contract by November 2023.
According to British Finance Minister Jeremy Hunt, the Indian government has provided its confirmation to explore the London Stock Exchange (LSE) for the direct listing of local firms. As of now, Indian companies are not allowed to list directly on overseas exchanges. Hunt also announced a host of partnership agreements that further strengthen India-UK bilateral relations.
SC warns SpiceJet of ‘drastic action’ if Credit Suisse dues unpaid
The Supreme Court has directed SpiceJet to pay $1.5 million in a case related to unpaid dues to Credit Suisse by September 15. The apex court warned the budget airline of unspecified “drastic action” at the next hearing if it failed to make the payment. A third of the amount is part of a monthly settlement plan SpiceJet had previously agreed with Credit Suisse. The rest are unpaid dues to the bank which it has failed to pay as per a schedule agreed upon last year.
Here are some of the major updates that could move the markets tomorrow:
TCS partners with JLR’s digital unit to drive ‘future-ready’ tech architecture
Tata Consultancy Services (TCS) has announced a landmark partnership with the digital unit of Jaguar Land Rover (JLR). The partnership aims to drive transformation, simplification, and effective management of JLR’s digital assets. The deal is valued at £800 million (`₹8,340 crore). TCS will provide application, development & maintenance, enterprise infrastructure management, cloud migration, cybersecurity, and data services at JLR.
REC Ltd raised $1.15 billion in August in two tranches from a consortium of six banks. Proceeds of the loans will be utilised to fund power, infrastructure and logistics sector projects as permitted under the external commercial borrowing (ECB) guidelines of the Reserve Bank of India. The funds have been raised under REC’s Market Borrowing Programme of ₹1.20 lakh crore for 2023-24.
Consumer court orders ITC to pay Rs 1 lakh to man who found one biscuit less in a packet
A consumer court has directed ITC Ltd to pay ₹1 lakh in compensation to a consumer who found one biscuit less in a packet. The consumer accused the FMCG company of deceptive practices after he claimed that he found only 15 biscuits in a packet that was supposed to contain 16. In its ruling, the consumer court found ITC guilty of engaging in “unfair trade practices” and ordered it to cease selling the particular batch of biscuits in question.
Ather Energy raises Rs 900 crore from Hero MotoCorp, GIC via rights issue
Ather Energy has raised ₹900 crore ($108.27 million) from its shareholders Hero MotoCorp and Singapore’s GIC through a rights issue. The company plans to use the funds for new product launches and expand its charging infrastructure and retail network. Ather witnessed sound growth in FY23, with the company’s revenue jumping 4.4 times to ₹1,783 crore from ₹408 crore in FY22. The EV firm also increased its retail footprint by 4x to 130 stores from 30 stores last year.
Tata Steel partners with ABB India to reduce carbon footprint in steel-making
ABB India and Tata Steel will jointly work on technologies for reducing the carbon footprint of steel production. Tata Steel has a medium-term target to reduce carbon emissions to less than two tonnes of Co2 per tonne of crude steel in its Indian operations by 2025. Under the agreement, the two companies will focus on system-level assessments of Tata Steel’s manufacturing plants and production facilities.
lndiaRF to acquire API, CRAMS business of Ind-Swift Labs
IndiaRF will acquire the active pharmaceutical ingredients (API) and contract research and manufacturing services (CRAMS) business of Ind-Swift Labs. The acquisition is for a consideration of ₹1,650 crore. IndiaRF is an India-focused investment platform promoted by Piramal Enterprises and Bain Capital. The company will use the money to restructure its existing debt.
Adani Total Gas wins work order from Ahmedabad Municipal Corporation
Adani Total Gas has received a work order from the Ahmedabad Municipal Corporation (AMC). The work order pertains to the design, build, finance and operations of a 500 tonnes per day (TPD) capacity of a Bio-CNG plant. The company will execute the order on a Public Private Partnership (PPP) model at Pirana or Gyaspur in Ahmedabad.
Reliance Retail Ventures Ltd. (RRVL) has partnered with Ed-a-Mamma, an eco-conscious clothing brand founded by Bollywood actress Alia Bhatt. RRVL acquired a majority stake of 51% in the company. The joint venture is poised to reshape the landscape of children’s fashion and maternity wear. With this partnership, Ed-a-Mamma will explore fresh domains, including personal care and baby furniture.
Australian agribusiness company Elders has selected HCL Technologies to accelerate digital transformation across its business operations. Under the multi-year partnership, HCL Tech will provide managed IT services and a diverse portfolio of IT capabilities. The IT major will also be responsible for application development & management, digital workplace capabilities, infrastructure, cybersecurity, and data management for Elders.
NIFTY started the day at 19,450 with a small gap-down of 14 points. From opening itself, the index was under selling pressure, and it fell steadily to 19,320 levels— a fall of nearly 120 points. Then, it gave a small retracement and closed at 19,365, down by 99 points or 0.51%
BANK NIFTY (BNF) started the day at 43,897 with a gap-down of 49 points. While Nifty was weaker, Bank Nifty went sideways and moved between 43,750 and 44,050 levels. BNF closed at 43,891, down by 55 points or 0.13%.
All indices except Nifty PSU Bank (+1.4%) and Nifty Realty (+0.12%) closed in the red. Nifty FMCG (-0.89%) fell the most.
Major Asian markets closed mixed. European markets are currently trading flat-to-red.
Today’s Moves
Adani Ports (+4.32%) was NIFTY50’s top gainer on the back of strong volumes.
Apar Industries (+9.8%) surged after the company’s management gave a positive outlook on its business.
Cochin Shipyard (+9.4%) continued its strong rally after posting robust Q1 FY24 results. The stock has zoomed 40% in three trading sessions.
ITC (-2.05%) was NIFTY50’s top loser. The company’s board approved the demerger of its hotels business yesterday. Meanwhile, analysts said that the next-term outlook for ITC remained strong.
Heavyweight stock Reliance (-1.4%) also dragged down the markets.
IRFC (-7.02%) fell sharply after reports stated that the Indian government was planning to sell its stake in the company.
Markets Ahead
Both indices gave mixed signals today: Nifty was weak, while Bank Nifty was holding strong. If we look broadly, we can say that the indices are mostly consolidating within a range.
Nifty The index is stuck in a range between 19,300 and 19,500— and these levels could act as strong support and resistance levels, respectively. But the immediate resistance to watch out for is 19,420. If the support level is breached, Nifty can give us targets of 19,200 and 18,900 eventually. Meanwhile, the upside target of 19,630 can be attained if the market crosses 19,500.
Bank Nifty: The index is still in our volatile zone between 44,500 and 43,400. Bank Nifty can continue to be volatile and hit stop losses on both sides as long as it trades in this range. So wait for this range to be broken.
The day was fairly easy for both option buyers and sellers!
As per reports, there are two negative factors weighing on global stock markets now: (1) US Federal Reserve’s minutes indicate that one more rate hike may be needed in this rate-hiking cycle to curb inflation. (2) Chinese macro data indicate that the economy is slowing more-than-expected earlier, and this will impact global economic growth.
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Here are some of the major updates that could move the markets today:
Stocks
ITC reported a standalone profit of Rs 4,902.74 crore, up 17.6% YoY. Revenue fell 8%, but margins increased. Also, the board approved the demerger of the hotel business; ITC shareholders will get 1 share of the hotel company for every 10 shares held.
Vodafone Idea reported a loss of Rs 7,840 crore, increasing more than ₹1,400 crores from last quarter.
Hero MotoCorp’s promoter family settled cases between themselves. It includes cases of management positions and usage of the trademark ‘HERO’.
Coffee Day reported a profit of Rs 21 crore, against a loss of Rs 17 crore last year with better revenue.
IndiGo’s promoter family is looking to raise Rs 3,735 crore via a block trade, selling shares at ₹2,400/share. This is 5% lower than the current market price.
Indiabulls Housing has recorded a consolidated profit of Rs 296.2 crore, up 3.3% YoY.
What to Expect Today?
NIFTY started the day at 19,383 with a small gap-down but fell to 19,260 immediately. There was a bounce back from this zone, and short-covering even took the index above the day-high. NIFTY closed at 19,434, up by 6.25 points or 0.03%
BANK NIFTY started the day at 44,066 with a gap-down and fell 300 points in 10 minutes. It then slowly moved back up, but could not break the day-high like NIFTY. BANK NIFTY closed at 44,090, down by 108 points or 0.24%.
US markets were flat on Monday and in deep red yesterday. The European markets also closed in the red.
The Asian markets are trading in deep red.
The U.S. Futures are trading flat.
GIFT NIFTY is trading in the red at 19,394.
All the factors combined indicate a gap-down opening in the market.
NIFTY has supports at 19,400, 19,360, 19,300 and 19,240. We can expect resistances at 19,438, 19,560 and 19,620.
BANK NIFTY has supports at 43,960, 43,840, 43,750 and 43,680. Resistances are at 44,277, 44,520, and 44,800.
NIFTY has the highest call OI build-up at 19,600. The highest put OI build-up is at 19,400. PCR is at 0.86.
BANK NIFTY has the highest call OI build-up at 44,500. The highest put OI build-up is at 44,000. PCR is at 0.76.
INDIA VIX is at 11.99, and looking to move up which could indicate a fall loading in the market. The VIX in the U.S market is also up.
The U.S. market has broken a consolidation zone and moved down yesterday night. This will contribute to initial weakness in our market and possible selling from FIIs.
NIFTY has the next important support at 19,240. It is a very strong buying zone as demonstrated on Monday.
If that level is broken, a quick fall to 19,200 can be expected to fill the gap in daily charts.
For the day, if a gap-down is seen and buying from there, it will indicate some short sellers booking profits. I would not go bullish until at least Monday’s high is broken.
BANK NIFTY has a good support level at 43,680 on the daily charts. Do keep this level in mind while trading.
The last 2 days before the weekly expiry. Hope you have safe and easy trades like FinNIFTY on Tuesday! Even with consolidation or movement, expected moves can still give profits.
Have a safe trading day!
Follow along with Smart Money(NIFTY) and Piggy Bank(BANK NIFTY) trades. Follow along on the marketfeed app, or on our website for trades!
Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!
Food and Price Inflation Rises After Monetary Value Growth Ideas Financial problems and forecasting market crashes crisis risk. The young man pushed the shopping cart along the rising arrow chart.
Here are some of the major updates that could move the markets on Wednesday:
India’s retail inflation surges to 7.44% in July
India’s retail inflation (measured by the Consumer Price Index) surged 7.44% on an annual basis in July, compared to 4.81% in June. The consumer food price index (CFPI) rose from 4.49% in June to 11.51% in July. The sharp rise can be attributed to a steeper-than-expected increase in vegetable prices (especially tomatoes) over the past month.
ITC Q1 Results: Net profit rises 17.5% YoY to ₹4,902 crore
ITC reported a 17.5% YoY rise in net profit to ₹4,902.74 crores for the quarter ended June (Q1 FY24); beating street estimates. Its revenue from operations fell 7.23% at ₹16,995.4 crore during the same period. EBITDA stood at ₹5,083 crore in Q1, up 10% YoY. Revenue from ITC’s core cigarette business grew 13% to ₹7,465.27 crore.
In other news, ITC’s board has approved the scheme of arrangement for the demerger of its hotels business into a separate listed subsidiary. Shareholders of ITC will get 1 share in the demerged hotels business for every 10 shares held in the parent company.
Axis Asset Management (the mutual fund arm of Axis Bank) has launched a private credit alternative investment fund (AIF) and is aiming to raise nearly ₹1,250 crore from investors. The private credit fund is part of Axis Mutual Fund’s alternative assets business, which includes late-stage private equity and real estate AIFs on the private markets side and portfolio management services and long-only equity AIFs on the public markets side.
Divi’s Labs Q1 Results: Net profit falls 49% YoY to ₹356 crore
Divi’s Laboratories reported a 49% YoY decline in consolidated net profit to ₹356 crore for the quarter ended June (Q1 FY24). Its revenue from operations fell 21% YoY to ₹1,778 crore during the same period. Total expenses stood at ₹1,367 crore in Q1, down 8% YoY.
SEBI seeks 15-day extension to complete probe in Adani-Hindenburg case
The Securities and Exchange Board of India (SEBI) has requested the Supreme Court to grant 15 more days to conclude the investigation into allegations made by US short-seller Hindenburg Research against the Adani Group. SEBI has completed investigating 17 out of the 24 transactions it had taken up for probe. The regulator has sought more information from other regulators and foreign jurisdictions to plan a further course of action.
SpiceJet Ltd reported a consolidated net profit of ₹197.64 crore for the quarter ended June (Q1 FY24). The airline reported a loss of ₹783.72 crore in Q1 FY23. its revenue from operations fell 19% YoY to ₹2,371.53 crore during the same period. The company’s profit was on the back of a 36% Yoy decline in total expenses to ₹2,069.24 crore in Q1.
According to the Directorate General of Civil Aviation (DGCA), India’s domestic air passenger traffic volume rose 25% year-on-year (YoY) to 1.21 crore passengers in July. IndiGo carried 76.75 lakh passengers, securing a market share of 63.4% during July. SpiceJet flew 5.04 lakh passengers in July, with a market share of 4.2%.
Ramkrishna Forgings secures $13.65 million order in North America
Ramkrishna Forgings has secured a $13.65 million (~₹107 crore) order from clients in the North American region. The order is for the supply of rear axle and transmission components. The company said it is strategically expanding its footprint in North America and strengthening its position within the light vehicle sector.
Ashok Leyland will fully acquire OHM Global Mobility Pvt Ltd from OHM International Mobility Ltd. The automaker will invest ₹300 crore into the acquired entity. The acquisition is a part of the company’s EV strategy to engage in the business of e-Mobility as a Service (eMaaS). OHM India is envisaged to operate in transportation, logistics operation and management and eMaaS.
L&T secures contract to build international cricket stadium
Larsen & Toubro (L&T) Construction has secured an order from the Uttar Pradesh Cricket Association to construct a cricket stadium in Varanasi on a Design & Build Turnkey basis. The scope of work for L&T includes the main ground as per ICC standards, display scoreboard, flood lights, corporate boxes, VIP lounges, office areas, broadcasting, press conference areas, kitchen & dining areas, and a practice ground.
Here are some of the major updates that could move the markets today:
Stocks
Adani Ports auditor Deloitte resigned from their duties on Friday, without giving any specific reasons. Adani appointed MSKA & Associates as a replacement.
ONGC reported a standalone profit of Rs 10,015 crore for the quarter, falling 34.1% YoY.
Nykaa reported a consolidated profit of Rs 5.4 crore for the quarter, up 8% YoY. This came with a good jump in revenue numbers.
Lupin’s manufacturing facility in Mandideep has been inspected by the USFDA without any observations.
Voltas registered a consolidated profit of Rs 129.4 crore for the quarter, up 18% YoY. However, margins fell.
RVNL reported a 15.3% YoY increase in profits to Rs 343 crore, driven by healthy operating income and topline.
Muthoot Finance reported a standalone profit of Rs 975 crore, up 22% YoY.
NIFTY started last week at 19,517 with a gap-up on Monday. There was an attempt to push the index down on Wednesday, but then NIFTY bounced back to the week’s high at 19,650 levels. The last 2 days were heavy selling days. NIFTY closed the week at 19,428, down by 89 points or 0.45%
BANK NIFTY started last week at 44,993 and had 4 red candles. The index gave a proper breakdown by Friday and touched the 44,100 mark. BANK NIFTY closed the week at 44,199, down by 342 points or 0.77%.
US markets closed in slight green on Friday. The European markets closed in deep red.
What to Expect Today?
The Asian markets are trading in deep red.
The U.S. Futures are trading slightly in the red.
GIFT NIFTY is trading in the red at 19,429.
All the factors combined indicate a gap-down opening in the market.
NIFTY has supports at 19,400, 19,300 19,240 and 19,100. We can expect resistances at 19,438, 19,560 and 19,620 and 19,720.
BANK NIFTY has supports at 44,100, 44,000, 43,840 and 43,750. Resistances are at 44,277, 44,520, and 44,800.
FIN NIFTY has supports at 19,730, 19,620, and 19,500. We can expect resistances at 19,730, 19,900, 20,000.
NIFTY has the highest call OI build-up at 19,600. The highest put OI build-up is at 19,400. PCR is at 0.63.
BANK NIFTY has the highest call OI build-up at 44,500. The highest put OI build-up is also at 44,000. PCR is at 0.64.
FIN NIFTY has OI buildup between 19,500-20,000. PCR is 0.52 [overly bearish].
In the week, Foreign Institutional Investors net-sold shares worth Rs 3,073.28 crores. Domestic Institutional Investors net-bought worth Rs 500.35 crores.
All global markets are trading in the red to start the week. As we had discussed, Friday was a trendsetter day for this week, and now we can see early signs of bearishness.
Bank Nifty has a crucial support at 44,100 from where bounce is important. NIFTY has similarly important support at 19,300.
FIIs sold heavily in the market on Friday, will be interesting to see what they do today.
The heavy call OI buildups across the market indicates bearishness for now. But these short-sellers might get in trouble in case of heavy buying because even though some supports have been broken, the movement range has not been high.
Do remember that tomorrow is a market holiday on account of Independence Day, and the premiums will move accordingly. That means the FINNIFTY expiry will be today, trade accordingly!
Follow along with Smart Money (NIFTY) and Piggy Bank (BANK NIFTY) trades. Follow along on the marketfeed app, or on our website for trades!
Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!
A dividend is a payment made by a company to its shareholders out of its earnings or accumulated profits. Listed companies usually pay dividends in cash and are an additional source of income for shareholders. They also issue dividends as additional shares of stock or other forms of property. Dividends serve as a way for companies to reward shareholders for their investments. However, companies are not legally bound to pay dividends. All companies can choose to issue dividends at their own discretion. In this article, we will examine the top dividend-paying stocks in India.
Why Should You Invest in Dividend Paying Stocks?
Passive Income
Dividends can be an excellent source of passive income. Passive income refers to earnings that require minimal effort or ongoing involvement of the investor. Dividend payments fit this definition because once you invest in dividend-paying stocks, you can receive regular income without actively working for it.
Regular Cash Flow
Dividend payments are often made quarterly or annually. This regularity provides a predictable income stream. Additionally, since companies pay dividends in cash, there will be a regular cash flow.
Increased Total Return
Dividend income can contribute to the total return of an investment. Total return refers to an investment’s overall profit or loss over a specific period. It considers both capital appreciation and any other income from the investment, such as dividends. When you reinvest dividends in the company’s shares, it can supercharge the total return through compounding.
Cushioning Market Volatility
Dividend-paying stocks can act as a cushion during market downturns. Even if the stock price temporarily declines, investors still receive dividend payments, which can help offset potential losses. This dividend income can provide stability to your portfolio and reduce the impact of market volatility.
Indicator of Financial Health
Companies that consistently pay dividends often exhibit stability and predictability in their financial performance. These companies are typically well-established, generate steady profits, and have a history of sharing their earnings with shareholders. Dividend payments can reassure investors of the company’s financial health and stability.
Factors to Consider Before Investing in Dividend-paying Companies
Not all companies that pay dividends are good. Before choosing a company to invest in, you should consider different factors. A few of them are listed below:
Dividend History
A company that has paid consistent dividends over the years tends to continue paying dividends in the future. Examine the company’s dividend payment history. Look for companies with a history of paying dividends consistently over a significant period. Consider whether the dividends have been maintained or increased over time. A stable or growing dividend history indicates the company’s commitment to rewarding shareholders.
Dividend Yield Ratio
The dividend yield ratio of a share is the ratio of the annual dividend per share to the share’s market price. It evaluates the dividend amount relative to the stock price. A higher dividend yield may indicate a potentially attractive income-generating opportunity. However, the dividend yield ratio is dynamic, as the value ratio changes with the stock price. It is essential to compare the yield with industry peers and assess its sustainability.
Dividend Payout Ratio
The dividend payout ratio represents the proportion of earnings paid out as dividends. A lower payout ratio indicates that the company retains a sizeable portion of its earnings for reinvestment or future growth, which can be positive for long-term stability. On the other hand, a high payout ratio may indicate that the company is distributing a significant portion of its profits, potentially limiting its ability to invest in growth opportunities or withstand economic downturns.
Payout Ratio = Dividends Per Share/Earnings Per Share × 100
Payout Ratio = Dividends per share/Free Cash Flow Per Share × 100
Company’s Financial Health
Look into the company’s financial health by reviewing its financial statements, including revenue growth, profitability, debt levels, and cash flow. A company with robust financials and a healthy balance sheet holds a solid position to sustain and potentially increase dividend payments.
Growth Prospects
Consider the company’s growth prospects and future earnings potential. While dividends provide income, assessing whether the company can grow its earnings over time is essential. Sustainable dividend payments often align with a company’s ability to generate consistent profits and reinvest in its business for future growth.
Economic and Market Conditions
Evaluate the broader economic and market conditions. Some industries, such as utilities or consumer staples, tend to have more stable cash flows. They are better positioned to maintain dividend payments during economic downturns. Consider the impact of economic factors, interest rates, and market volatility on the company’s ability to sustain its dividend payments.
Valuation
Assess the company’s valuation relative to its peers and its historical valuation. A company with an attractive valuation may provide an opportunity for capital appreciation in addition to dividend income. However, be cautious of excessively high dividend yields that may signal
underlying risks.
Best Highest Dividend Paying Stocks In India
Given below are a few of the best highest-dividend paying stocks in India:
No.
Name
Sector
1
Infosys
Information Technology
2
Hindustan Unilever
FMCG
3
ITC
FMCG
4
Oil & Natural Gas Corp
Energy
5
HDFC Bank
Financial
Infosys Ltd
Infosys Ltd is engaged in consulting, technology, outsourcing, and next-generation digital services. The IT company’s core services include application management services, proprietary application development services, independent validation solutions, product engineering & management, infrastructure management services, traditional enterprise application implementation, and support & integration services. Its products and platforms include Finacle, Panaya, Skava, and LEAP.
The company offers services to enterprises in the financial services & insurance, manufacturing, retail, consumer goods, logistics, energy, communication, telecom, and media sectors. Infosys has grown into the 2nd largest information technology company in India behind TCS.
Hindustan Unilever Ltd
Hindustan Unilever Ltd is a consumer staples company. It manufactures and sells food, home care, personal care, and refreshment products in India and internationally. The company operates through Home Care, Beauty & Personal Care, Foods & Refreshments, and other segments.
The Home Care segment engages in detergent bars and powders, detergent liquids, scourers, water business, purifiers business, etc. The Beauty & Personal Care segment provides oral, skin, and hair care products; soaps, deodorants, talcum powder, color cosmetics, salon services, etc. The Foods & Refreshment segment sells fruit-based products, soups, tea, coffee, health food drinks, ice-creams, and frozen desserts.
The company is also involved in job work, real estate, and discharge trust activities. Hindustan Unilever is a subsidiary of Unilever Plc.
ITC Ltd
ITC Ltd is a consumer staples company. The company operates through four segments: FMCG (fast-moving consumer goods), Hotels, Paperboards, Paper and Packaging, and Agri-Business.
Cigarettes, branded packaged foods, education & stationery products, personal care products, safety matches, agarbattis, and apparel forms its FMCG business. The company operates a chain of over 100 hotels across India. Its Agri Business segment includes agri commodities such as soya, spices, coffee, and leaf tobacco. ITC owns and operates brands such as Aashirvaad, Bingo!, Candyman, Fiama, Vivel, Classmate, Superia, Engage, Mangaldeep, Aim, and Homelites.
ITC also offers information technology services and branded residences.
Oil & Natural Gas Corporation Ltd
Oil and Natural Gas Corporation (ONGC) Ltd is the largest producer of crude oil and natural gas in India. The primary activities of the company include exploration, development, and production of crude oil, natural gas, and value-added products. ONGC has two business segments— Exploration and Production and Refining and Marketing.
ONGC contributes nearly 71% to India’s total production of crude oil. The crude extracted by the company is used as raw material by downstream companies such as Indian Oil Corp. (IOCL), BPCL, and HPCL. Moreover, ONGC contributes ~63% to the total gas production in our country.
Mangalore Refinery and Petrochemicals Ltd, ONGC Videsh Ltd, and Petronet MHB Ltd are its subsidiaries.
HDFC Bank
HDFC Bank Ltd is the largest private sector bank in India. It offers a comprehensive range of banking and financial services, including retail banking, wholesale banking, and treasury operations. The company is also the market leader in the credit card business in India. As of 31 March 2023, the bank’s distribution network was at 7,821 branches across 3,203 cities.
In conclusion, investing in dividend-paying stocks can create additional income, supercharging long-term wealth creation. While investing, it is crucial to look beyond the absolute dividend values and consider other factors such as payout ratios. This investing style is best suitable for people who need regular cash flow!
Disclaimer: The stocks mentioned in the article are solely for educational purposes. Please do your own research before investing.
NIFTY started the day flat at 19,729 with a gap-up of 57 points. The index immediately fell, taking rejection from the earlier support zone of 19,700. It moved down till yesterday’s low of 19,660 zones (making lower lows), gave a strong pull-back to the 19,700 zone, and took rejection there. Then, Nifty gave a good fall to 19,620 levels and took support from there to move again sharply to the rejection zone of 19,700. Niftyclosed at 19,680, up by 8.25 points or 0.04%.
BANK NIFTY (BNF) started the day at 46,154 with a gap-up of 231 points. The index fell to the 45,900-600 support zones but couldn’t sustain. After the breakdown and re-test of those levels, Bank Nifty further fell to 45,600 levels to take support and gave a huge recovery till the rejection zone of 45,900 zones. BNFclosed at 45,845, down by 78 points or 0.17%.
Nifty Metal (+2.94%) and Nifty Media (+1.5%) moved up the most, while Nifty PSU Bank (-1.4%) fell sharply.
Major Asian markets closed mixed. European markets are currently trading in the green.
Today’s Moves
Hindalco (+3.82%) was NIFTY50’s top gainer.
Metal stocks Tata Steel (+3.25%), JSW Steel (+3.2%), NTPC (+2.4%), NALCO (+2.9%), Hindustan Copper (+5.4%), and others surged today.
Jyothy Labs (+19.9%) rallied after its net profit jumped 102% to ₹96.25 crore on the back of moderating input costs and a stable demand environment in Q1 FY24.
Asian Paints (-4.04%) was NIFTY50’s top loser. The company’s consolidated net profit rose 53% YoY to Rs 1,550 crore; beating street estimates.
ITC (-1.9%) continued its fall after announcing the demerger of its hotel business.
Olectra Greentech (-9%) shares have fallen 21% in 7 days. BSE and NSE have placed the stock under the long-term ASM framework.
Markets Ahead
Markets have turned bearish, and the levels mentioned in yesterday’s post-market analysis acted as planned. Our targets of 19,560 in Nifty and 45,500 in Bank Nifty are still intact. So if there’s a follow-up tomorrow, those targets could be hit!
Nifty: Now, the important resistance is clearly 19,700 and the important support is near 19,560 (which also coincides with the falling channel pattern low). If there’s a flat opening tomorrow below 19,700, Nifty can have another round of sell-off tomorrow. On the other hand, if there’s a breakout from the 19,700 level, the index can move to the 19,770 resistance level.
Bank Nifty: The index is now below the support zone of 45,900 and has turned bearish. But on a 5 min chart, there’s a bullish head and shoulder pattern that’s been formed. So if the index crosses 45,800 tomorrow, we can expect it to fall to today’s low and eventually till the 45,500 level. If there’s a breakout from 46,000 levels, Bank Nifty can move to 46,250 as the first target.
FIN NIFTY was super volatile like Nifty and Bank Nifty on expiry day. The index made some crazy moves, creating trouble for both option buyers and sellers. But if you were a safe/conservative option seller, you would have made money!
Meanwhile, business activity in the U.S. slowed to a five-month low in July, dragged down by decelerating service-sector growth. The Federal Open Market Committee’s (FOMC) meeting will begin today. Investors are expecting the group to raise interest rates by 25 basis points to their highest level since 2001.
How did your expiry trading go? Let us know in the comments section of the marketfeed app.
Here are some of the major updates that could move the markets tomorrow:
ITC board gives in-principle approval for demerger of hotels business
The board of FMCG major ITC has given in-principle approval for the demerger of its hotel business. Under the new scheme, ITC would hold around 40% stake and the balance will be held by the company’s shareholders (proportionate to their shareholding). ITC currently has over 120 hotels and 11,600 keys across over 70 locations.
Tata Steel Q1 Results: Net profit falls 92% YoY to ₹634 crore
Tata Steel reported a 92% YoY decline in consolidated net profit to ₹634 crore for the quarter ended June (Q1 FY24). Its revenue from operations fell 6% YoY to ₹59,490 crore during the same period. The company said its profitability was affected by non-cash deferred tax charges on account of buy-in transactions at British steel pension scheme.
TVS Motor Q1 Results: Net profit rises 46% YoY to Rs 468 crore
TVS Motor Company Ltd reported a 46% YoY increase in net profit to ₹468 crore for the quarter ended June (Q1 FY24). Its revenue from operations rose 20% YoY to ₹7,218 crore during the same period. The company posted its highest-ever operating EBITDA at ₹764 crore, with a growth of 27% YoY. Total expenses Q1 stood at ₹6,665 crore, up 19% YoY.
JLR India reported its best-ever Q1 sales performance with a growth of 102% in Q1 FY24. The automaker sold 1,048 units in the first quarter of FY24. JLR attributed this growth to a rise of about 209% in Range Rover, Range Rover Sport and Defender sales. The three models contribute to 78% of the current order book.
Samvardhana Motherson to acquire assets, shares of Dr Schneider Group entities
Samvardhana Motherson International Ltd will acquire assets and shares of Germany-based Dr Schneider Group entities at an overall enterprise value of about 118.3 million euros (over ₹1,070 crore). Dr Schneider Group is a manufacturer of high-end, innovative, and integrated electronic interior polymer components and systems such as smart surfaces and lighting modules.
Canara Bank Q1 Results: Net profit rises 75% YoY to ₹3,535 crore
Canara Bank reported a 75% YoY increase in net profit to ₹3,535 crore for the quarter ended June (Q1 FY24). Its net interest income (NII) rose 28% YoY to ₹8,666 crore in Q1. Provisions for the first quarter fell sharply by 26% to ₹2,719 crore. The gross non-performing assets (NPAs) ratio improved to 5.15% in Q1 FY24, compared to 5.35% in Q4 FY23 and 6.98% in Q4 FY23.
Mahindra Group to help US companies set up manufacturing base in India
Mahindra & Mahindra said it will help American companies enhance their international footprint and expand by leveraging the advantages of India as a manufacturing hub. The assistance includes an integrated approach to manufacturing, plug-and-play offerings, regulatory guidance, and a focus on environmental, social, and governance (ESG) principles.
IDBI Bank Q1 results: Net profit rises 62% to ₹1,244 crore
IDBI Bank reported a 62% YoY rise in net profit to ₹1,244 crore for the quarter ended June (Q1 FY24). The net interest income (NII) grew 61% YoY to ₹3,998 crore during the same period. The gross non-performing assets (NPAs) ratio improved to 0.44% in Q1 FY24, compared to 1.26% in Q1 FY23.
Hikal ordered to cease operations at Bharuch plant
Hikal Ltd. received an order from the Gujarat Pollution Control Board to cease operations of its plant in the Bharuch district. The order was issued in light of an alleged violation reported to have occurred in 2021. It is related to alleged violations of certain provisions of the Environment (Protection) Act of 1986.
Maruti Suzuki recalls 87,599 units of S-Presso and Eeco
Maruti Suzuki has recalled 87,599 vehicles of its S-Presso and Eeco models to replace defective steering tie rods. Affected vehicle owners will receive communication from Maruti Suzuki authorised dealer workshops for inspection and replacement of the faulty part, free of charge. The recall is effective today, i.e. 24th July, 2023.
NIFTY started the day flat at 19,748. The index was volatile within a 100-point range between 19,780 and 19,680 with a bearish bias. It has been moving in a downward channel since Friday. Niftyclosed at 19,672, down by 72 points or 0.37%.
BANK NIFTY (BNF) started the day at 46,131 with a small gap-up of 56 points. Similar to Nifty, BNF fell sharply after 11:30 and consolidated in a 230-point range for the remainder of the day. The index has also formed a triangular pattern. BNFclosed at 45,923, down by 152 points or 0.33%.
All indices except Nifty Pharma (+0.4%), Nifty Realty (+0.2%), Nifty PSU Bank (+0.1%), and Nifty Auto (+0.17%) closed in the red. Nifty FMCG (-1.7%) fell the most.
Major Asian markets closed mixed. France’s CAC40 is currently trading in the red, while UK’s FTSE100 and Germany’s Dax are in green.
Today’s Moves
SBI Life (+2.05%) was NIFTY50’s top gainer on the back of strong volumes.
Aarti Drugs (+18.6%) surged after the company approved plans for a buyback of 6.65 lakh fully paid-up equity shares. The floor price for the buyback is set at ₹900 per share, which is over 72% higher than the stock’s closing price on Friday.
ITC (-3.89%) was NIFTY50’s top loser. The company’s board has given in-principle approval for the demerger of its hotel business.
Kotak Bank (-3.7%) fell sharply despite reporting better-than-expected Q1 results.
Tejas Networks (-8.1%) crashed after the company’s net loss widened sequentially in the April-June (Q1) quarter.
Hikal (-7.28%) moved down after the Gujarat Pollution Control Board (GPCB) asked the pharma company to close down its plant in Bharuch for alleged violation of environmental norms.
Markets Ahead
Both Nifty and Bank Nifty are at crucial support zones and can give good moves on either side tomorrow.
Nifty: The index is now below its support of 19,700. But if there’s a flat or gap down opening, the index can further come down to the 19,560 level. If there’s a gap up and further up-move, the index can go back into the consolidation zone of 19,800 and 19,700.
Bank Nifty: 45,900 in Bank Nifty is a very important support zone. A breakdown from here can give us the target till the round levels of 45,500 and then eventually to 45,200 zones. But looking at the triangular pattern Bank Nifty has formed, a breakout on the upside is more likely to happen and if the market goes up tomorrow, we can expect a target of 46,400.
Meanwhile, Reliance Industries shares fell over 2% today after the company reported lower-than-estimated Q1 earnings. The US will report its manufacturing PMI data tonight.
Being FIN NIFTY expiry tomorrow, major indices can be volatile. Since it’s the monthly expiry also, we can expect some directional moves tomorrow. So trade cautiously if you’re a non-directional player!
Which levels are you watching out for FIN NIFTY expiry tomorrow? Let us know in the comments section of the marketfeed app.
NIFTY started the day flat at 19,831. The index initially moved down to 19,760 levels (which was a major support zone). Then, Nifty started its upside rally and went up till 19991.7— hitting a fresh all-time high and missing the 20,000 mark by just 9 points! Niftyclosed at 19,979, up by 146 points or 0.74%.
BANK NIFTY (BNF) started the day at 45,689 with a small gap-up of 19 points. The index initially consolidated within a small range above the resistance level of 45,700. Then, similar to Nifty, Bank Nifty just moved up throughout the day to hit an all-time high of 46,257. BNFclosed at 46,186, up by 517 points or 1.13%.
All indices except Nifty IT (-0.66%) closed flat-to-green. Nifty Pharma (+1.46%) and Nifty FMCG (+1.35%) moved up the most.
Major Asian markets closed mixed. European markets are currently trading in the green.
Today’s Moves
ITC (+2.7%) was NIFTY50’s top gainer. The stock hit a fresh 52-week high of ₹493.7 and its market cap crossed the ₹6 lakh crore mark.
Polycab (+9.48%) extended gains for the second day after the company reported an 81% YoY increase in its net profit for Q1.
Hatsun Agro Products (+7.5%) jumped over 12% after posting its Q1 results.
Reliance (-7.8%) turned ex-date for demerger of its financial services business.
Infosys (-1.7%) posted an 11% year-on-year (YoY) growth in consolidated net profit to ₹5,945 crore in Q1; missing street estimates.
ABB India (-6.4%) fell after its parent company’s order inflows declined 2% to $8,667 million in CY2023.
Markets Ahead
As mentioned earlier, the Indian markets have turned bullish and both Nifty and Bank Nifty are at their all-time highs.
Nifty: Now, the important resistance for Nifty will be the bigger round level of 20,000 and support will be 19,840 levels. If Nifty crosses the 20,000 mark, it can move further higher to a target of 20,080 as per pivot levels. If the index crosses 19,930, which is the previous swing, a target of 19,888 and 19,840 levels can be achieved.
Bank Nifty: The important support zone now in Bank Nifty will be the round level of 46,000. The major resistance will be today’s high. If there’s a breakout on the upside, the index can move to 46,600 zones according to pivot levels. A breakdown from 46,000 can give us a target of 45,870 and 45,760 levels eventually.
Even though the markets kept moving higher and higher, it was an easy expiry for both option buyers and sellers. How did your expiry day go? Are you in net profit or loss? Let us know in the comment section of the marketfeed app!
Meanwhile, shares of de-merged Reliance Industries (RIL) were discovered at ₹2,580 on NSE and ₹2,589 on BSE after the special pre-opening session organised by the stock exchanges. RIL’s NBFC unit Jio Financial Services’ price came out to be ₹261.85 per share, beating estimates of up to ₹170.
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