To make the best use
of the sharp rise in the share market this year (2014), many promoters have
announced stock split to infuse capital in their companies. Since January 1
this year (2014), when the BSE's Sensitive Index or SENSEX stood at 21140.48,
nearly 80 companies have announced stock split, show data from Capitaline.
In this time period,
the SENSEX rallied about 25%. Between May 16 and October 1, the SENSEX has
rallied 10% cent and 55 firms proposed stock splits.
The bulk of companies
going for stock splits are from the mid- and small-cap segments - La Opala RG,
Alkyl Amines and J & K Bank. Some big names include Axis Bank & Havells
India.
Some others like
State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda 9BOB),
Canara Bank and ICICI Bank have announced split recently.
Actions like stock
split and buyback offer little in terms of understanding for a small investor.
Many wonder if it warrants an equal reaction from their end in terms of buying
or selling a stock that announces a split.
Src: BS
