The Hindu Business Line : Keep your eyes on dividend yield

Battered and bruised by a market that fell like ninepins, here are Khan, Dakshinamoorthy, Sridevi and Jogin, to catch up and chat up. Fasten your seatbelts.

Kay: Hello, everybody! Who crashed the Sensex?

Sri: Not me. Let's wait till kursi becomes stable.

Tell me about agri.

Dax: I too agree. Jain Irrigation has got a massive order from AP.

Jog: Lay the investment pipes but will money flow in?

Are we regressing?

Sri: Then you'll become ape soon! LOL. Market can rebound sharply today, and even rise by 200 points!

Kay: My strategy is to go for May Nifty 1800 calls.

Rs 4.65.

Jog: Yeah, upside can be very high and possible loss is around one thousand on each contract.

Dax: To me HPCL and BPCL look attractive from a fundamental viewpoint.

Jog: Did you hear the bearish noises?

FIIs are not too happy. Will banks get a pinch?

Sri: I have good news from the weatherman. That should boost FMCG stocks such as HLL, P&G and Marico.

Dax: Kay, can I switch to mid-cap stocks that are fundamentally strong and have low FIIs' stake? Tell me, yaar.

Kay: Ideally, you sit on cash as it is safe to have your principal intact. :-)

Sri: Hey Jog, is Mangalam Cement coming out of BIFR purview? You have their kundli.

Jog: Likely. I'm buying in. Dai Ichi Karkaria may take stake in the company.

Kay: Nobody is bothered about IT? Rupee falling and the

Left is not looking at them, so IT is in demand.

Sri: I'm making a list of dividend yield stocks.

Kay: Best investment candidates. Don't forget to include Chambal Fertiliser and Varun Shipping.

Dax: Also, PNB Gilts, Paper Products, GE Shipping, Union Bank (all over 5 per cent yield).

Jog: Dividend yield = amount to be received as dividend divided by the market price. Right?

Kay: Yes, say Rs 5 is dividend and market price is Rs 100.

Dividend yield is 5 per cent. Make money, be happy!

Lee, with inputs from Vir, Nat and Jay.

Send in your views to: Chat@TheHindu.co.in.