5 Stocks Set To Go Ex-Bonus In March 2023

Several stocks have declared bonus issue of shares. Here are a few that are set to go ex-bonus in the month of March 2023.

It's important to note for investors that once the stocks go ex-bonus the stock almost tends to fall in proportion to the bonus issue of shares. To cite an example, if the stock is trading at Rs 100 and has declared a 1:1 bonus, the shares would tend to fall to Rs 50 or thereabouts. Now, what we are saying is that the drop is not exactly to Rs 50, but it could be slightly more or less than that. So, investors need not get excited about bonus issue of shares.

In some cases, especially if the stock is a small cap stock, the shares tend to flare much ahead of the board meetings. So, investors must study the fundamentals of a company rather than chasing shares that are likely to declare a bonus issue of shares.

Apart from this one also needs to remember that just in case one makes profits, there would be a capital gains that is levied on such stocks.

Indian markets fall

Meanwhile, Indian markets have been seeing a sharp fall over the last couple of days in line with global trends. Also, higher bond yields have also impacted the markets. India 10 year bond yield hits the high level of 7.45% which is the highest since November 22, this is an indication of nervousness in the market. In the last policy meeting, MPC refrained from giving forward guidance and retained the optionality to be on either side based on incoming data to change their stance to neutral on interest rates.

Should inflation numbers go higher markets would continue to fall as bond yields would surge. Rising interest rates at the moment is the biggest worry for the Indian markets. In short, volatility is likely to persist going ahead and investors should exercise some degree of caution.