Month: October 2021

In a conversation with IANS, BSE MD and CEO Ashishkumar Chauhan pointed out that macro-economic growth indicators have painted a healthy picture of the economy which coincides with the accelerated pace of India‘s vaccination rate.

“With the Indian government putting focus on structural reforms and capex, we are seeing early signs of increase in private investments.”

“That coupled with monetary stimulus provided by RBI aimed at boosting growth is only going to help India remain amongst the fastest growing economies in the world.”

According to Chauhan, India’s economy has recovered more strongly than it was halted by the pandemic.

“The economic toll from a deadly second wave of Covid-19 outbreak in India last quarter wasn’t as bad as feared, with the nation still very much on track to achieving the world’s fastest growth this year.”

“High-frequency data showed the impact of pandemic restrictions were less severe than last year, enabling demand to recover quickly in the consumption-driven economy.”

The optimism over India’s economic rebound pushed the benchmark S&P BSE Sensex above the 60,000-mark.

New investors along with healthy inflows of foreign funds and receding impact of Covid 2.0 have been cited as the key propellants of the equity market.

Besides, he expects the localised approach to contain the second Covid wave would continue to allow majority of business activities to continue and cushion the economic blow.

“The economic indicators clearly suggest that the Indian markets shall continue to perform well in in the coming days and achieve newer, greater milestones as we move forward.”

Furthermore, he said the pandemic has led in new market participants in the country.

“During the pandemic, we observed that the markets provided liquidity for investors in the worst of times. The government did not force the markets to close which allowed people who were in need of funds to sell their assets like stocks or mutual fund units, collect their money, use it for other purposes and that would not have been possible if we had closed down the markets.”

“Also, another reason is the rapid digitisation of processes that occurred during this time, it has made the investment process much easier for new comers and veterans alike.”

Recently, the BSE crossed the 8 crore Registered Investor Accounts (UCC).

The journey from 7 to 8 crore users took only 107 days making it the fastest addition in the history.

1. Universal Autofoundry:

The company is into manufacturing and selling of iron castings to the automotive and engineering industries. The product line of the company includes lift arms, adaptor plates, brake and control housings, rocker, brackets, suspension and engine mounting, and brake drums.

Universal Autofoundry is a small cap scrip with a m-cap of Rs. 16.53 crore. For the financial year ended March 2021, the board of the company recommended a final dividend of Rs. 0.5 per share of Rs. 10 (Dividend -5%). Record date as fixed for determining the shareholders who will be eligible for this dividend pay-out was fixed at October 1, 2021, while the stock turned ex-dividend in respect of this declared dividend on September 30, 2021.

The dividend, upon approval at the company’s AGM, scheduled to be held on Friday, 17th September, 2021, will be paid on or after Friday, 17th September, 2021 but within 30 days from the declaration of dividend at Annual General Meeting as provided in the Companies Act, 2013.

LTP: Rs. 52.25

2. Asian Granito:

Established in the year 2000, Asian Granito India is amongst the leading ceramic companies in the country. The company’s offerings include tiles, marble & quartz and bathware. The company’s market cap stood at Rs. 966 crore.

The tiles company announced a final dividend of Rs. 0.5 for the fiscal year 2020-21 for which the record date is decided at October 12. In the last 5 years, the company has announced a maximum final dividend of Rs. 1.3 per share for the financial year ended 2018.

3. Tata Consultancy Services:

The country’s leading software major TCS in its board meeting scheduled on October 8 will consider recommending second interim dividend for the financial year 2022. Previously, the IT company decided on paying out Rs. 7 as first interim dividend for the Fy 2022 for which the stock turned ex-dividend on July 15, 2021.

For the year ending March 2021 Tata Consultancy Services has declared an equity dividend of 3800.00% amounting to Rs 38 per share. At the current share price of Rs 3753.00 this results in a dividend yield of 1.01%.

4. Rashtriya Chemicals & Fertilizers Ltd.(RCF):

Established in the year 1978, the company is a leading fertilizer and chemical manufacturing company in the public sector. The company’s two divisions are namely fertilizers and the other industrial products. Products of the company include ammonia/urea, formic acid and carbon dioxide and hydrogen peroxide.

For the fy ended 2021, the company has announced a final dividend of Rs. 1.78 (dividend %-17.8 percent) for which the stock shall turn ex-dividend on October 20, 2021. On the ex-date, the scrip is adjusted for dividend pay-out. In the past, the company has announced an interim dividend of Rs. 1.2 per share for the FY 2021.

Considering the dividend pay-out and the stock’s last trading price of Rs. 83.1, the dividend yield equates to 3.59.

This PSU company is again a small cap scrip with a market cap of Rs. 4584 crore.

5. HCL Tech:

This tech company offering innovative solutions around Digital, IoT, Cloud, Automation, Cybersecurity, Analytics, Infrastructure Management and Engineering is a large cap scrip.

The company’s board meet is scheduled for October 14, 2021 and in that besides quarterly results, the company will also deliberate on its 3rd interim dividend for the fiscal year 2022.

Earlier the company has declared two interim dividends of Rs. 6 each per share.

5 Dividend paying stocks in October 2021

Edelweiss Balanced Advantage Fund Direct-Growth

This fund is a medium-sized fund of its category and has been in performance for the last 8 years. The fund has a 0.44 percent expense ratio, which is lower than most other funds in the same category. The fund currently has a 59.90 percent equity allocation and a 20.90 percent debt exposure. According to Value Research, Edelweiss Balanced Advantage Fund Direct-Growth returns over the previous year were 36.51 percent, with an average annual return of 13.73 percent since launching.

The fund has a major equity allocation across the Financial, Technology, Energy, FMCG, and Metals sectors. ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd – PPE, GOI are the fund’s top five holdings. The fund has been rated 5-star by Value Research and also by Morningstar which indicates the performance quality of the fund. As of 4th October 2021, the fund has a Net Asset Value (NAV) of Rs 38.99 and the Asset Under Management (AUM) of the fund is Rs 5,303.54 Cr. The fund has an exit load of 1% if purchased units more than 10% are redeemed between 1 year of the investment date. With a minimum monthly contribution of Rs 500 only, you can start SIP in this fund.

Kotak Balanced Advantage Fund Direct – Growth

Kotak Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund scheme introduced by the fund house Kotak Mahindra Mutual Fund in 2018 and has been in operation for three years. It is a medium-sized fund among its category, with an expense ratio of 0.49 percent, which is lower than the expense ratio charged by most other Dynamic Asset Allocation funds. The fund now has a 34.00 percent equity allocation and a 26.90 percent debt exposure. According to Value Research, Kotak Balanced Advantage Fund Direct – Growth’s 1-year returns were 24.02 percent, and it has generated 13.53 percent average annual returns since its inception.

The financial, metals, technology, services, and energy sectors make up the majority of the fund’s equity holdings. As of now, the fund’s best-performing holdings are Kotak Liquid Plan A – Growth, GOI, Bharti Airtel Ltd., ICICI Bank Ltd., Adani Ports, and Special Economic Zone Ltd.. Value Research has given the fund a 5-star rating, while Morningstar has given it a 4-star rating, indicating that the fund’s potential to generate good returns is comparable to that of other funds in its category. The fund’s Net Asset Value (NAV) is Rs 14.96, and its Asset Under Management (AUM) is Rs 10,688.09 Cr as of October 4, 2021.

If purchased units are redeemed within one year of the investment date, the fund charges a 1% exit load. The fund’s average credit grade is AAA, and its three-year annualised return exceeds the benchmark -NIFTY50 Hybrid. With a minimal investment of Rs 100, one can begin a systematic investment plan with this fund.

Best Dynamic Asset Allocation Funds To Invest In 2021

Based on the 5-star rating of Value Research and past performance of 3 years, here we have selected 2 best performing balanced advantage funds that you can consider investing in 2021.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency, or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates, and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in