Indian Oil Corporation | Ex-bonus | Latest stock market news(3 minutes read)

Stock name: Indian Oil Corporation

Pattern: Ex-bonus

Time frame: Daily

Observation: Many people after looking at the chart of IOCL today, would feel that the stock has fallen by over 32% today with a gap down and the buyers of this stock would have suffered heavy losses. However, this is not correct. The stock had announced issue of bonus shares earlier and today the stock went ex-bonus. This simply means that this price fall will get compensated by credit of additional shares proportionately to the shareholders who bought the shares till yesterday.

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Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

1) Similarly, the stock of Bajaj Auto may seem to be 3.64% down today, however, this is on account of the stock becoming ex-dividend today, meaning that the shareholders who bought the stock till yesterday, will get dividend in the bank. Hence, the price fall today will be compensated by the dividend payment.

2) The board of the SEBI yesterday allowed FPIs to participate in the exchange-traded commodity derivatives market. The regulator said FPIs will be allowed to trade in all non-agricultural commodity derivatives and select non-agricultural benchmark indices. Earlier, they were mandated to have actual exposure to trade in commodity derivatives.

3) Domestic crude oil producers will now be able to sell their output to buyers of their choice. This will help boost price realisation for companies like ONGC, Oil India etc. Currently the Govt. allocates domestic crude to refineries based on their location and processing capabilities.