Sensex Rises 300 Points; Capital Goods & Healthcare Stocks Lead

Share markets in India are presently trading on a positive note. Barring oil & gas sector, all sectoral indices are trading in green with stocks in the capital goods sectorhealthcare sector and realty sector witnessing maximum buying interest.

The BSE Sensex is trading up by 306 points (up 0.8%), while the NSE Nifty is trading up by 82 points (up 0.8%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.7%.

The rupee is trading at Rs 71.35 against the US$.

Speaking of stock markets in general, the market is typically focused on the most recent star performers.

You will often find the likes of HUL or HDFC Bank being the market darlings for never having a disappointing quarter.

But it is rare to find companies that thrive through most of their survival period.

Tanushree Banerjee shares few of her thoughts on this. Here's an excerpt of what she wrote in a recent edition of The 5 Minute WrapUp...

  • It is rare to find companies that survive for decades. It's even rarer to find ones that thrive through most of their survival period.

    So, if you do not wish to pay steep valuations for the market darlings, you need to look for the companies with history and consistency on their side.

    And they shouldn't be too conspicuous to the market either.

    I am talking of companies like Hawkins and City Union Bank. They have a track record of paying dividends for decades.

    The dividends such companies pay are especially helpful at a time when globally interest rates are headed lower.

And, as seen in the chart below, 'risk-free returns' from debt seem to have gone missing.

Inflation Adjusted Risk Free Returns Are Negligible Globally

Inflation Adjusted Risk Free Returns Are Negligible Globally

 

So, should you ignore the big bluechips while chasing dividend stocks?

As per Tanushree, big money is made over the long term, not by making more in the good years but by losing less in the bad years.

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