Listen: Give your portfolio a dividend advantage in tough times

Hi hello. Welcome to ETMarkets Morning, the money, business and markets show. I am Nikhil Agarwal. Let’s start with the headlines first.

– Omicron variant leads to increase in COVID cases in United States
– Tatas merges AirAsia India with AI Express
– Tech companies want two more years for tokenization
– Axis pips Kotak, Indusind for Citi’s consumer sector in India

Now let me give you a quick overview of the state of the markets.

Asian stocks opened higher on Tuesday as investors looked for bargains after falling sharply in the previous session, ignoring a rout on Wall Street. The MSCI Asia-Pacific Ex-Japan Equity Index rose 0.50%.

Elsewhere, the yield on 10-year Treasuries was flat at 1.42%. The dollar hovered below recent highs on Tuesday after losing ground overnight after a blow to Democratic spending plans in Washington, but concerns over the Omicron coronavirus variant have kept currencies at risk under control.

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That said, here’s what’s in the news.

As Indian stocks enter the first technical correction in over five years, higher dividend yielding stocks are back in vogue given their resilience when markets are volatile. The Nifty Dividend Opportunities 50 Index – an index of high dividend yielding companies – has outperformed the Nifty 50 Index by 63 and 190 basis points respectively in the past three and six months. The old index has a dividend yield of 3.1% compared to just 1.2% for the Nifty 50.

Central public sector companies will need to aim for a 10% increase in their market capitalization each year starting in FY 23, a performance measure that has raised concern among companies and their administrative ministries. Some government departments have now called for the requirement to be removed, arguing that market capitalization is not something they can control or manage because a stock’s performance depends on many factors.

India’s benchmarks are only 10% lower from their 52-week highs, but a scratch below the surface would paint a darker picture of the destruction of investor wealth. As many as 325 stocks on the NSE 500 are down more than 20% from their 52-week highs, while around 140 stocks are trading 30-60% below their annual highs. This indicates that the wider market is already in the throes of the downside.

RECENTLY,

Indian stocks, which have more than doubled from their pandemic lows in a record run over the past 21 months, may not be a buy market if it falls for now, analysts said. . The constant selling by foreign investors against a backdrop of rich valuations, the reversal of the easy liquidity policies of global central banks, and the growing threat of the Omicron variant have made India a “sell-up” market for investors. traders at the moment.

NOW Before you go, here’s a look at some of the stocks that are buzzing this morning …

Axis Bank emerged as the frontrunner to buy Citi’s consumer business in India, edging out rival rivals Kotak Mahindra Bank and Indusind Bank.

Reliance Jio Infocomm (Jio) added 1.7 million wireless subscribers in October, bringing its gross user base to 426.59 million, reflecting the shift of low-end subscribers from competitors Bharti Airtel and Vodafone Idea (Vi ) to Jio.

Vedanta Ltd acquired Nicomet, a Goa-based nickel and cobalt producer, making Vedanta the only nickel producer in India.

IT services major Wipro on Monday announced that it has signed an agreement to acquire Texas-based cybersecurity consulting provider Edgile for a cash consideration of $ 230 million, as it seeks to strengthen its position in the industry. growing space for cybersecurity services.

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Also check out over two dozen stock recommendations for today’s trading from top analysts on ETMarkets.com.

That’s all for the moment. Stay with us for all the market news throughout the day. Good investment!

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