Stocks to Watch Today: Brigade Enterprises, Balrampur Chini & Engineers India (11 August 2026)

Once a person hears the word dividend he simply understands it to be a profit or a reward, but why a company does profit sharing with its customers. Here are the answers:

A dividend is cash or reward which is given, for delivering returns to the equity shareholders, on the capital invested by them in the business. It is often a part of the profit that the company shares with its shareholders.

What is a Dividend Policy?

A company uses dividend policy to structure its dividend payout to the shareholders. Dividend decisions refer to the decision-making mechanism of the management to declare the dividends.

Why do we need to have a dividend policy?

These are the major reasons as to why do we need dividend policy.

1. Maximize the shareholder’s wealth

The company’s ultimate objective is to maximize the shareholder’s wealth. The shareholders invest in the company and the company should pay them in such a manner that they further continue to invest.

2. Fulfilling the financial needs of the company

If the shareholders continue to invest in the company, the company would have enough money to sustain in the competitive market.

Factors influencing the dividend decision that a company takes:

There does not exist a single dividend decision factor that can work for every organization.

1. The earnings of the company and its prospects.
2. The Company’s cash inflows, which includes its stability and liquidity requirements.
3. Shareholder’s expectation towards dividend as a source of income.
4. Stability in the dividend payouts, irregularity in dividend payout should be avoided.
5. The tax considerations, as the company would be left with fewer profits after paying out the taxes.
6. Restrictive covenants such as creditors, lenders, debenture holders because of them there is a huge impact on the decisions.
7. Long terms payout decision of the company.
8. Control policy of the company so that the shareholder's control would be less in the company.
9. Impact of the trade cycle
10. Government policies as the government intervene in a particular industry and can restrict the issue of shares or debentures.

Forms of Dividend:

Cash dividend

A dividend which is paid out in cash. It will reduce the cash reserves of a company.

Bonus shares

Bonus shares are the shares in the company which are distributed to shareholders at no cost. It is not done in the place of cash dividend but in addition to a cash dividend.

How does a company approach towards the dividend policy?

Well, there are two approaches to the same:

1. When the company thinks of itself first that is when it looks for profitable avenues for reinvestment and pooling the funds into the company and whatever remains is then distributed to the shareholders.
2. When the company thinks of shareholders first that is it takes an active decision of distributing the dividend in a planned and strategic manner.

What patterns do the companies follow while paying out dividends?

Stable Dividend Policy

The company decides to pay periodically a fixed amount of dividend to the shareholders. Even when the company incurs loss or generates high profit, there is no change in the dividend paid.

Regular Dividend Policy

A certain percentage of the company’s profit is allowed as dividends to the shareholders. When the gain is high, the shareholders’ earnings will also rise and vice-versa.

Irregular Dividend Policy

The company may or may not pay dividends to the shareholders. As per their priorities, the top management i.e., the board of directors solely take all dividend decisions.

No Dividend Policy

The company has no intention of declaring any dividends to its shareholders. The company always retain its profits to fund further projects.

What is a Sound Dividend Policy?

When the company is at the initial stage and it earns little profit, then it should give lower dividends to the shareholders.

When the company is growing it should provide a dividend to the shareholders in a proportionate manner.

When the company can survive in the market, it should provide a stable dividend to its shareholders.

What will be the impact of dividend decision on the share prices of the company?

If the company is paying dividends regularly, there is a pressure for maintaining the stability in the dividend payout. If it does not pay dividends even for one year and retains the funds for capital investment then it may prove hazardous for the company.

In cases of the company which has no stability in dividend policies, when the company does declare a dividend, the share prices will rise before the ex-dividend date. On dividend declaration more and more people invest by buying its shares, these shares are then sold. This is then followed by a fall in the share prices. It would result in great volatility.

A company’s dividend decisions and policy depict its future and financial well-being. Dividend payout policies are considered to be a bridge between the company and shareholders for profit-sharing. It would be difficult for investors to know the intentions of the management if the management does not have a sound dividend policy.

The dividend policies of an organization also result in a significant bearing on the market value of stocks, it also impacts the valuation of the company. Hence, it needs to be systematically framed and implemented.

Nifty hits new all-time high of oddest number 13579 with positive closing for the sixth consecutive week.

As we said earlier that we are in a roaring bull market because of Nifty and Sensex both end with a weekly gain for the sixth consecutive week whereas they hit a new all-time high for the fifth consecutive week. Nifty hits a new high of 13579 which is the oddest number in the oddest year which has an even number 2020 while Sensex hits an all-time high of 46309. At the end of the week, they both ended with a gain of around 2%.

If we talk about last week hero then it was the FMCG sector which ends with a gain of more than 6% in the leadership of heavyweights ITC and HUL.

Data Analysis:

Foreign Institutional Investors remain on the driver’s seat where they bought around 16719cr in the cash market last week while DIIs are still in the mood of selling as they sold around 12434 Cr in the cash market.

If we talk about F&O data then FIIs long exposure in index future stands at 77% which was the same as last week but it is still a little elevated level. PCR ratio stands at 1.55 mark which is a comfortable level.

What do Technical Charts Say?

Technical charts say that Nifty is in strong bullish momentum but last week's high of 13579 is a critical number as per Gann's theory, therefore, we could see some resistance at this point while above the 13579 levels, 13689/13770 will be the next target levels for the Nifty. On the downside, 13400-13300 is an immediate demand zone while 13150-12950 is a critical demand zone because below the 12950 levels, we can expect any trend reversal.

If we talk about Bank nifty then it is also showing decent strength where 30800-31000 is an immediate supply zone; above this, 31500/32000 will be the next resistance levels. On the downside, 30200-29800 will be an immediate demand zone while 29000-28500 will be the critical demand zone.

Important cues for the next week:

• Inflation numbers: Both CPI and WPI numbers will be announced on Monday for India and they may have a significant impact on the market because the stock market is worrying about high inflation numbers amid a rise in commodity and vegetable prices.
• US Fed meeting outcome: We will have the outcome of the US Fed meeting on 16th December which will have a significant impact on global markets.
• Other central banks meeting: BOE and BOJ will also come out their monetary policy on 17th December and 18th December respectively.
• Covid19 cases and vaccine-related news: The trend in COVID19 cases and news flow regarding vaccines will continue to impact global markets.
• FIIs’ behavior: FIIs’ behavior will be the key for the market direction as they are driving the current bull market.

Equity investment is one of the most important investment avenues for investors as it always gives multiple returns in a long duration. But yes the major question is how can we select that stock, just by hearing the name only, Is that enough? Probably not, but you try to understand the basic structure of the company can surely benefit.

Every investor tries to invest in those companies which are having a long record of performance along with high trust value. Because it's business it may run long or can collapse soon. So while investing in equities there lies a risk of investment also, which actually makes Indian investors stay away from the equity asset class. And Investors shift themself towards other instruments like FD, Bonds Gold, etc which are having criteria of fixed return which many investors enjoy.

How to Identify Good Stock for Investments:-

It's been always a big question to identify a good stock as there are more than 6000+ companies listed on the exchange and it's not easy to track each company from an investment perspective. As all it takes a long time just to understand about the company better one should the basic approach to understand it.

Identification of Sector:

Before proceeding towards investment in any stock we should first select the sector in which we want to invest, Selection of the sector actually depends upon the understanding of the business model of the company so that investor should relate it with the current market condition. In the stock market, it's better to go with the flow instead of going against the flow.

Understand the Business Model of the Stock:

Once the sector selection process is done. We must look into the business of a selected company, what kind of business the company is doing will it be suitable for the long-term, how its revenue generated, the impact of government policy etc, these all things actually play a vital role while selecting any stock.

Company Management:

Warren Buffett Quoted once – "I look for integrity, energy, and intelligence in management."

Management is considered as the backbone of the company, A fair management always gives a clear outlook of the business as well as present a fair image of the company. One should look at what kind of management is in the company is it Professional management or Family management. Professional management is more favorable while selecting any stock.

Past track record of the company:

Investment is actually a game of numbers along with facts & figures, Companies showing consistent growth with positive returns are always considered more favorable, Though the business is not the same all-time some times its profit some times its loss, So investors actually show faith in those companies who are consistent in the market from a long run.

With the help of certain financial statements like P&L, Balance Sheet one can actually look into the company performance, though it's not easy for everyone to read the financial statements one can take the help of certain financial websites available for it.

We all know that trading in the stock market is not so easy as it considered orally, for daily trading in you need to track the market on all basis especially those are indulge in Day Trading / Intraday Trading, Before we proceed lets clear the concept of Intraday Trading:-

“A person or individual who is engaged in purchasing or selling of stocks within the same day is Intraday Trading “

But how can we do it? Is still a question mark for many. For this just follow a very simple top-down approach to understand how the market can behave for the very next day.

For a trader, it is very important to know the next day market for which need to look not only the domestic ques but the global outlook is also very important as the Indian market is on its developing stages.

Tracking of Market:-

For an everyday trader, it is essential to know about the global ques along with domestic market So a trader first need to check out the Closing of  “US & Europe Market”.

After this, we should check the Opening of Asian Market, whatever happened overnight in US & Europe market will make an impact on the opening of the Asian market.

Once Asian market opened its important for Indian traders to check the opening of SGX NIFTY, it acts as an opening indicator for the Indian market, it also takes the cues from another market ( US & Europe Impact on Asian Market) which leads to indicate the opening of the Indian market.

At last, a trader should check the impact of any News or Data which can create an impact on market should be tracked prior, Impact of any Micro or Macroeconomic news should be considered while one is tracking the market because it may give impact on the same day or can affect later on.

Once a trader is clear about the opening of market the second most important work is to track the stock for trading, No one can directly jump and purchase any stock after just hearing the name though many newcomers do that only as they are not aware of the process.

Points to Remember while Day Trading:-

Trade-in Liquid Stocks:

Volume plays a vital role while you trade in the market so a beginner its better to trade only in liquid stocks or in blue chips & always follow proper research and self-study before taking any trade. The market is inherently volatile in nature you cannot blame anyone for your loss.

Follow Market News & Views:

One should always be aware of market updates as it actually impacts on the performance of that particular sector/stock.

Avoid Unplanned Trades:

Many often if you are not clear about the market condition, avoid taking any trades into the market because it's better to sit without trade rather then booking an unnecessary loss.

Google, Facebook, Amazon, Apple Netflix, etc have been household names in our homes and our lives, and it goes without saying that these will continue to become more prevalent and relevant in the years to come. But…why haven’t we been able to be a part of this bull ride? Just because these are international stock?

For a long time, the Fortune 500 and the S&P 500 have remained the domain of the rich and investments in the US stock market remained elusive to us; not anymore! With Swastika, you can make your investment portfolio diversified and invest in the US stock market with the simple click of a button.

With swastika, it is now possible to invest in companies you know and love, from all around the world.

Invest in US Stock Markets with Swastika at Zero Minimum Balance

With Swastika, you can invest in the US stock market without any minimum invest, absolutely at zero minimum balance!

Invest in U.S. Stock Markets with Swastika and Diversify your Portfolio Internationally

You can invest in multiple economies without any restrictions and lower your trading and investment risk. With Swastika, you get a personalized team of experts.

Make your Investments International with Swastika

Go International and invest in futuristic global companies listed on US stock markets with Swastika. Grow your wealth with investments in the fastest growing companies in the US like never before!

• Invest in Global Stocks & ETF
• Hassle-free investments in S&P 500 Companies
• 4,000+ International Securities
• Fractional Shares of stocks with no minimum investment
• Superior Returns, Corporate governance and Financial Transparency
• AI-powered online trading platforms
• Pay only when you trade
• Get live market quotes & do real-time trading
• Brokerage - 0.5% of transaction value
• No hidden charges

Fractional Shares of Stocks

On our online trading platform, you can invest in either full or fractional shares. If the investment is in full shares, then our broker partner, Drivewealth, will route the orders to market centres on an agency basis. If the investment is in fractional shares, our broker partner, Drivewealth, will satisfy the order form on its own account on a principal basis, at the National Best Bid or Offer. NBBO means that the broker partner cannot add a margin to the price. Therefore, any order for both full or fractional shares will be executed via both methods, part as an agent and part as a principle. Under the RBI’s Liberalised Remittance Scheme guidelines (LRS). Reserve Bank of India (RBI) has laid out a set of policies that governs the maximum amount and purposes of remittance. Under LRS, an Indian Resident can annually send or invest up to USD 250000 abroad without seeking approval from RBI. This scheme has simplified it for Indian residents to study abroad, travel and make investments in other countries. For latest up to date information, refer RBI’s website and also see article 6(iii) for specific LRS regulations regarding investment in equity. If you want to buy $50 dollar worth of a share of Apple or Microsoft, you can! WE have democratized access to international investing with fractional investments.

Value Partnership

Swastika has partnered with a US brokerage - DriveWealth. The US brokerage ecosystem recommends that every investor account should have insurance. DriveWealth is a member of Securities Investor Protection Corporation (SIPC) which currently ensures your account against broker default by up to $500,000 of which $250,000 may be in cash.*

Start your global investment journey

Open a Demat Account - Only Just 3 steps

• Sign Up & enter your details to open a US brokerage account.

• Fill up the KYC details, PAN & address and upload a photocopy of your documents.

• After KYC verification, add funds to your US brokerage account to start investing.

What are Farm Bills?

On September 27, India's President gave consent to three farm bills herein listed below:

Farmer's Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

As per this bill, farmers can enter into a written agreement for a specified period of time with companies and companies can customize the price, standard, and quality for the produce and other legalities in advance.

Farmer's (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020

The new Marketplace law says that farmers can sell their produce anywhere – and not just in the APMC approved marketplace or mandis, they can sell it into not only their state but outside their state even online. Whereas state governments are prohibited from levying any market fee, cess, or levy outside APMC or Mandi areas.

The Essential Commodities (Amendment) Bill, 2020

This Act mainly controls and deals with the production, supply, and distribution of certain essential commodities. Companies and Supermarkets etc cannot accumulate the items listed in this act when there is a shortage and they can’t artificially increase the price.

Why Are Farmers Protesting?

The Farmers of UP, Haryana, and Punjab are upset with these bills and fear that this may be an excuse to pull off the MSP safety net from under their feet.

What is MSP?

MSP stands for Minimum Support Price, It is the price lay down by the government to purchase crops from the farmers, whatever may be the market price for the crops. It is a significant part of India's agricultural price policy that assures the farmers about agricultural income before the sowing. MSP protects the farmers against excessive fall in price during bumper production years

Further State like Haryana & Punjab has vested interest of reduction in their state earnings as state governments are prohibited from levying any market fee, cess, or levy outside APMC or Mandi areas.

Haryana levies 2% Mandi Tax that goes to Mandi Board & 2% Rural Development cess that goes to state govt. whereas in Punjab it is 3% Mandi Tax and 3% rural development cess. Punjab is a smaller state and that earns Rs. 1700 crore in a year through rural development cess & Mandi tax. Besides this 2.5% commission agent also take home 2.% of the sale price.

So. these are some controversies on Farm Bills, Now let's see what comes out on round table conference between Farmer Unions and Centre.

Source:

https://www.indianeconomy.net/splclassroom/what-is-minimum-support-price/