45 companies splitting stock and FY17 has just begun

The Financial year 2017 has just crossed a quarter and 45 companies have already announced the stock-split for the year. Stock splits generally happen in a bull market as many promoters also want to keep hold of the wealth created by the secondary market. Giving out bonuses and splits is just an additional way of creating wealth in the hands of the shareholders.

What is a Stock Split?

All the Public-traded companies have a fixed number of shares that are held or traded in the share market. The stock split increases the number of those shares in the market. The price of each share is adjusted so that the market capitalization of the company remains the same and dilution doesn’t occur.

Why the Split?

The split is usually done by the company whose share price has increased to a level that is either too high or is beyond the levels of the companies in the same sector. The main motive of the split is to make the shares more affordable to small investors, keeping the underlying value of the company unchanged.

The Investment Strategy:

The split makes the stock affordable to even the small investors hence they rush to buy the stock, boosting the demand and driving up the price. Hence, it is often seen that the stock prices rise almost right after they have gone down due to the splits. Also, the split indicates that the price of the stock have been rising drastically and will continue to do so in the future as well, pushing the demand and price in turn.

But one should not ignore the fundamentals of the company in the process of blindly following the buy pattern. They must keep an eye on the proportionate growth in the bottom line of the company before investing their hard-earned money in such stocks.

Stock-Splits this financial year:

• Karur Vysya Bank: The Bank, yesterday, has sought shareholder’s approval for the stock split of five for one. This means that each share of the Bank will be split in to five. This split will bring the Karur Vysya Bank share price down which is currently at the face value of Rs. 10. Though the shareholder’s are yet to nod over the proposal, the stock has started gaining little by little over NSE.
• KNR Constructions: On 26^th of September, KNR Constructions share price traded on a new 52-weeks high after the company declared that the Board meeting will be held on 30^th of the month for considering the stock-split in the ratio of 1:5. This means that each share of Rs. 10 will be split in to the five shares of Rs. 2 each.
• 8K Miles: 8K Miles share price went up by 4% on 27^th on the company announced that it has fixed 13^th October 2016 as the date for ascertaining the eligibility of shareholders entitled for the stock split and bonus issue. The announcement was made on 26^th September after the market hours. On 24^thAugust, the company’s board approved the stock split in the ratio of 1:2 with one bonus share on every three shares held.
• Trent: On September 12^th, Trent split its one share of face value Rs. 10 in to ten shares of face value of Re. 1. The stock had surged around 10% on the day of the split. The split was approved on June 28^th 2016.
• V Guard: Right ahead of its stock split, V Guard share price hit a record high. On 31^st August 2016, the company divided its one equity share of Rs 10 in to ten shares of re. 1 each.
• Maruti Suzuki: Maruti share price has seen a jump of nearly fivefold in past four years. The company is considering the stock split requested by the shareholders as the stock has become inaccessible to many because of the price hike. In past three years, Maruti has appreciated to a magnificent 302%, surpassing both the Nifty and the Sensex.
• Bajaj Finance: On 26^th July, the board of Bajaj Finance approved the stock split of one equity share of face value of Rs. 10 in to the five shares of face value Rs. 2 each. The company also declared a bonus of one share for every share held of face value Rs. 2.  Bajaj Finance share price zoomed over 12% on the trade same day. The company completed its split on 12^th September.
• JMT Auto: JMT Auto share price gained after the company announced 22^nd September as the date for the split. The company split its share in two for one ratio.

Other than these big names, KPR Mills announced its stock split and went trading at a new high. Capri Global share price rallied 16% on the announcement of the split. And these are just a few names from the long list of 45 companies that have planned of indulging into the stock split this financial year.

Nifty Eyes 8800 with Expected Passage of GST Bill

Indian Market Outlook: Nifty benchmark index was positive last week on expectation of passage of GST bill as well as positive global cues. Nifty spot is currently facing stiff resistance between 8640-8680, however, with strong FII flows it is expected that the level should be crossed and 8800 mark is on the cards by the GST passage. Caution should be kept in mind that this rally has continued since last 5 months and once GST is passed correction can set in.

Top 5 gainers were Eicher Motor, Adani Port, Zee Entertainment Ltd, Lupin and Tata Power.

Open Interest Futures & Options Index Update:

 

On the first day of August expiry, 29th of July, FII & Pro have bought 114900 shares combined which is below the average of 705075.

The total for the July expiry from the 1st July to 28th July was 5231025 shares, which indicates that big players built long positions in market in the last expiry.

 

 

On the first day of August expiry, 29th of July, FII & Pro have sold 1990575 shares combined, below
average of 2920650.
The total for the July expiry from the 1st July to 28th July was -574725 which indicates that a Buy positions which were created for the clearing were squared off.



FII & DII Cash Buy/Sell Activity:

In the week gone by, FII continued its buying spree in the cash segment with a buy totaling worth Rs. 3720 cr. DII, on the other hand stood opposite with a net sell worth RS. 1564 cr in the same period. Combined, shares worth Rs. 2155 cr were bought for the week.

The combine FII and Pro have seen a continued increase in long position in Index future and a increase of short position in index options. In the cash segment FII and DII combined are net buyers of Rs. 2155 Cr since 25th July 2016.


Disclaimer:
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

 

 

Nifty Closes Above 8650 as GST seems a Reality

Indian Market Outlook:

Nifty ended the July F&O expiry on a strong note closing above 8660. July has seen the comeback of FII who have bought over Rs. 12000 crores worth of stocks in the cash market. The consensus amongst all political parties regarding GST is a strong indication that the bill might see the light of the day in Rajya Sabha next week. Nifty can see a sharp upside movement if it is able to sustain above 8650 and possible upsides targets could be 8800-8850 in the event of GST being cleared. The support of Nifty remains at 8565. Another major event to watch out for the day is the Bank of Japan Policy decision where investors would keenly watch for any sign of further stimulus.

The Top 5 gainers are Asian Paint, Infratel, Maruti, Eicher Motor and Bosch.

Nifty August Futures is expected to open flat at 8693 as per SGX Nifty at 8:00 am IST.

Open Interest Futures & Options Index Update:

On 28th of July, 

FII & Pro have sold 1909350 shares combined which is above the average of 705075. Important to note that yesterday was F&O expiry.

The total for the July expiry from the 1st July to 28th July is buy 5231025 shares, which indicates that big players have built long positions in market.

On 28th of July, FII & Pro have sold 4764525 shares combined which is above the average of

2920650. Important to note that yesterday was F&O expiry.

The total for the July expiry from the 1st July to 28th July is 574725 which indicates that a sell position has been created for the clearing.

FII & DII Cash Buy/Sell Activity:

Last trading day, FII have bought shares worth Rs. 1767 Cr and DII have sold shares worth Rs. 1074 Cr. Combined, net buying worth Rs. 693 cr was seen.

Since 1st July 2016, FII have bought Rs.10136 crores worth shares where as DII have sold shares worth Rs.6202 crores in the cash segment.

FII and DII combined have a net buy worth Rs. 3934 Cr since 1st July 2016.

The combine FII and Pro have seen a continued increase in long position in Index future and an increase of long position in index options. In the cash segment FII and DII combined are net buyers of Rs. 2988 Cr since 1st July 2016.

Disclaimer:

The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.

Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Nifty Closes Above 8650 as GST seems a Reality

Indian Market Outlook:

Nifty ended the July F&O expiry on a strong note closing above 8660. July has seen the comeback of FII who have bought over Rs. 12000 crores worth of stocks in the cash market. The consensus amongst all political parties regarding GST is a strong indication that the bill might see the light of the day in Rajya Sabha next week. Nifty can see a sharp upside movement if it is able to sustain above 8650 and possible upsides targets could be 8800-8850 in the event of GST being cleared. The support of Nifty remains at 8565. Another major event to watch out for the day is the Bank of Japan Policy decision where investors would keenly watch for any sign of further stimulus.

The Top 5 gainers are Asian Paint, Infratel, Maruti, Eicher Motor and Bosch.

Nifty August Futures is expected to open flat at 8693 as per SGX Nifty at 8:00 am IST.

Open Interest Futures & Options Index Update:

On 28th of July, 

FII & Pro have sold 1909350 shares combined which is above the average of 705075. Important to note that yesterday was F&O expiry.

The total for the July expiry from the 1st July to 28th July is buy 5231025 shares, which indicates that big players have built long positions in market.

On 28th of July, FII & Pro have sold 4764525 shares combined which is above the average of

2920650. Important to note that yesterday was F&O expiry.

The total for the July expiry from the 1st July to 28th July is 574725 which indicates that a sell position has been created for the clearing.

FII & DII Cash Buy/Sell Activity:

Last trading day, FII have bought shares worth Rs. 1767 Cr and DII have sold shares worth Rs. 1074 Cr. Combined, net buying worth Rs. 693 cr was seen.

Since 1st July 2016, FII have bought Rs.10136 crores worth shares where as DII have sold shares worth Rs.6202 crores in the cash segment.

FII and DII combined have a net buy worth Rs. 3934 Cr since 1st July 2016.

The combine FII and Pro have seen a continued increase in long position in Index future and an increase of long position in index options. In the cash segment FII and DII combined are net buyers of Rs. 2988 Cr since 1st July 2016.

Disclaimer:

The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.

Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Nifty Consolidates as GST Tabling Delayed, Fed Meet Eyed Today

Indian Market Outlook: 

Nifty enters a consolidation phase as it seems likely that tabling of GST bill in Rajya Sabha may be delayed. Nifty opened at 8640 and traded in a 20 point range for most part of the trading session before falling down by 30 points at close yesterday. It made a high of 8652 and this level as per Dynamic Levels suggests stiff monthly resistance. The Mid Cap and Small Cap stocks also gave correction yesterday. The notable exception was CNX IT which ended with minor gains.
The Top 5 gainers are Axis Bank, Power Grid, Yes bank, Tata Steel and HCL Tech.
Nifty is expected to open at 8605 as per SGX Nifty at 8:30 am IST, which is 13 points above the previous close.
 
Open Interest Futures & Options Index Update:

 


On 26th of July, FII & Pro have bought 636750 shares combined which is below the average of 705075.
The total for the July expiry from the 1st July to 26th July is buy 6656625 shares, which indicates that big players are building long positions in market.

 

On 26th of July, FII & Pro have sold 2895000 shares combined which is above the average of 2920650.The total for the July expiry from the 1st July to 26th July is 1763625 which indicates that a Buy position has been created for the clearing.

 

FII & DII Cash Buy/Sell Activity:

 
Last trading day, FII have bought shares worth Rs. 891.01 Cr and DII have sold shares worth Rs. 67.89 Cr. Combined, net buying worth Rs. 823.12 cr was seen.Last trading day, FII have bought shares worth Rs. 671 Cr and DII have sold shares worth Rs. 418 Cr. Combined, net buying worth Rs. 253 cr was seen.
Since 1st July 2016, FII have bought Rs.7964 crores worth shares where as DII have sold shares worth Rs.4975 crores in the cash segment.
FII and DII combined have a net buy worth Rs. 2988 Cr since 1st July 2016.

The combine FII and Pro have seen a continued increase in long position in Index future and an increase of long position in index options. In the cash segment FII and DII combined are net buyers of Rs. 2988 Cr since 1st July 2016.

Disclaimer:
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Nifty Making New 52 Week High, GST Major Trigger

Indian Market Outlook:

A fresh week saw Nifty outperforming its global peers with a breakout above weekly high of 8605, Nifty made a high of 8645 and the momentum was aided by Bank Nifty which rose sharply by 300 points to close at 18980.Market players are keenly awaiting the passage of GST bill which will be one of the biggest tax reforms in a decade, the positive sentiment is expected to continue today despite international markets weakness. Nifty trend is a buy and any correction today of 50 to 60 points should be used as an buying opportunity.
The top 5 gainers are Bhel, Bank of Baroda, Maruti, State Bank of India and Asian paints.

Open Interest Futures & Options Index Update:

On 25th of July, FII & Pro have bought 77475 shares combined which is below the average of 705075.

The total for the July expiry from the 1st July to 25th July is buy 6019875 shares, which indicates that big players are building long positions in market.

 

On 25th of July, FII & Pro have bought 3048750 shares combined which is above the average of 2920650.
The total for the July expiry from the 1st July to 25th July is 4658625 which indicates that a Buy position has been created for the clearing.

FII & DII Cash Buy/Sell Activity:

Last trading day, FII have bought shares worth Rs. 891.01 Cr and DII have sold shares worth Rs. 67.89 Cr. Combined, net buying worth Rs. 823.12 cr was seen.
Since 1st July 2016, FII have bought Rs.7293 crores worth shares where as DII have sold shares worth Rs.4557 crores in the cash segment.
FII and DII combined have a net buy worth Rs. 2735 Cr since 1st July 2016.
The combine FII and Pro have seen a continued increase in long position in Index future and an increase of long position in index options. In the cash segment FII and DII combined are net buyers of Rs. 2735 Cr since 1st July 2016.

Disclaimer: 

The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Nifty Poised at 8560 Ahead of F&O Expiry - GST Big Trigger

Indian Market Outlook:

Nifty ended last week at 8556 with no major movement witnessed, the weekly range being 120 points. The action shifts to this week as futures and option expiry for month of July is on 28th and GST bill is to be tabled in Rajya Sabha this week. FII have been continuous buyers over last 10 trading sessions while at the same time DII have been sellers. Global events hold importance with FOMC on 27th night and Bank of Japan on 29th morning, which might bring in fresh volatility.
Axis bank declared its results which showed increase in NPA and highlights the NPA problem which has started affecting private banking stocks. The top 5 gainers are Tata Motors DVR, Tata Motors, PowerGrid, Infratel, TataMetalik.

Open Interest Futures & Options Index Update:

 

On 22nd of July, FII & Pro have bought 393750 shares combined which is below the average of 705075.

The total for the July expiry from the 1st July to 22th July is buy 5942400 shares, which indicates that big players are building long positions in market.
 

On 22nd of July, FII & Pro have bought 1116300 shares combined, below average of 2920650.

The total for the July expiry from the 1st July to 22th July is 1609875 which indicates that a Buy position has been created for the clearing.

FII & DII Cash Buy/Sell Activity:

Last trading day, FII have bought shares worth Rs. 437.78 Cr and DII have sold shares worth Rs. 364.67 Cr. Combined, net buying worth Rs. 72.11 cr was seen.
Since 1st July 2016, FII have bought Rs.6402 crores worth shares where as DII have sold shares worth Rs.4490 crores in the cash segment.
FII and DII combined have a net buy worth Rs. 1912 Cr since 1st July 2016.
The combine FII and Pro have seen a continued increase in long position in Index future and an increase of long position in index options. In the cash segment FII and DII combined are net buyers of Rs. 1912 Cr since 1st July 2016. The immediate target for Nifty as per Dynamic Levels is 8648.

Disclaimer:The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022