The Hindu Business Line : Banking on the divident cut

The much-anticipated pre-Budget rally has turned out to be elusive till date. It remains to be seen if the Budget expectations could spark buying interest in the final stretch leading upto the Budget.

The much-expected removal of dividend tax could keep market interest alive in stocks that offer a healthy dividend yield. In this context, banking stocks could probably return to the top of the trading list, as most of the banks (Bank of India, Oriental Bank, City Union Bank and Andhra Bank in particular) are attractive dividend yield stocks

Considering that these stocks have passed through a healthy correction in past few weeks, it appears just about time for the return of speculative fervour in these stocks.

Along with banking stocks, a few fundamentally sound stocks from other sectors such as Ashok Leyland Finance, Cholamandalam Finance and TVS Srichakra could also attract market interest.

BL Research Bureau

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