DDT abolished: Nearly 60% high dividend yielding shares end in the red

Foreign institutional investors (FIIs) sold shares worth over Rs 1,200 crore, provisional data provided to the stock exchanges shows

Stocks that offer high dividend yields or with high cash levels failed to make positive strides despite the government abolishing 20 per cent dividend distribution tax (DDT).

Business Standard analysed companies with high dividend yields, dividend payouts, and cash levels (of those which could be potential dividend payers). About 60 per cent of these stocks closed the day with losses on Monday, even as the benchmark indices ended in the green. The average fall in the 30 stocks (excluding ITC) was 1.2 per cent, as against a 0.34 per cent gain in the Sensex.

The Street was hoping that investors will lap