Dividend Alert: BAJAJ_AUTO, ITC Lead Payouts; Buy by Thursday for

Twelve Indian companies are scheduled to turn ex-dividend on Friday, meaning investors must acquire their shares by Thursday to qualify for the upcoming dividend payments. Bajaj Auto is notable for its substantial Rs 150 final dividend, while ITC is also offering an Rs 8 dividend. This is a routine but important event for income-focused investors.

This matters for Indian market participants as it presents immediate, short-term trading opportunities for dividend capture. The announcement of significant dividends, especially from large-cap companies like Bajaj Auto and ITC, often leads to increased trading activity and can provide a floor for stock prices in the days leading up to the ex-dividend date, reflecting investor confidence in the company's profitability.

Companies like BAJAJ_AUTO and ITC are likely to see increased buying interest leading up to Thursday's cut-off, potentially supporting their share prices. Other companies mentioned as going ex-date, such as IEX and MANAPPURAM, will also experience similar, albeit potentially smaller, effects. The auto sector, with Bajaj Auto's strong dividend, reinforces positive sentiment, especially given recent rallies in auto stocks.

Traders should monitor the trading volumes and price action of these specific stocks, particularly BAJAJ_AUTO and ITC, over the next two days. Post ex-dividend date, there might be a slight dip in share prices as dividend arbitrageurs exit their positions. Investors should also consider the tax implications of dividends and the overall financial health of the companies beyond just the dividend yield.

• •Twelve companies are set to turn ex-dividend on Friday.
• •Investors must own shares by Thursday to be eligible due to SEBI's T+1 settlement and a market holiday.
• •Bajaj Auto leads with a Rs 150 final dividend.
• •ITC is offering an Rs 8 dividend.
• •IEX and Manappuram Finance are also going ex-date next week.