On Monday, share markets in India opened on a positive note and ended the day in green after an optimistic day of trading.
The BSE Sensex closed higher by 192 points to end the day at 36,579. While the broader NSE Nifty ended up by 55 points, to end the day at 10,962 points.
Among BSE sectoral indices, realty stocks rose the most by 1.5%, followed by telecom stocks at 1.2%. Axis Bank and Tata Motors were among the top gainers.
L&T share price as the markets regulator denied approval to the company's Rs 90 billion share buyback plan.
As per an article in a leading financial daily, the buyback was rejected, citing compliance issues over its post-buyback debt-equity ratio.
Wipro share price is likely to be in focus today as the company lowered margin guidance for its IT services business in the range of $2,047 million to $2,088 million for the March quarter, which translates into a flat 2% sequential growth.
The IT company on Friday posted a strong 31.8% YoY jump in its consolidated net profit at 25.4 billion and announced a 1:3 bonus share offer.
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The number of buyback offers in 2017-18 were at an all-time high. Never, in the last two decades, had Indian markets seen fifty-nine companies announcing buyback plans.
But what is truly surprising is that unlike in the past, the buybacks this time seem skewed in favour of short term investors rather than long term ones.
Here's what Tanushree Banerjee, Co-head of Research at Equitymaster, wrote about it in The 5 Minute WrapUp...
At Equitymaster, we believe, as a shareholder in cash rich companies, you should not only be wary of expensive buybacks. But if possible use it to your advantage to rake in some cash.
As per Rahul Shah, co-head of Research, investors should not assume buybacks are always good. Here's an excerpt of what he wrote in one of the editions of The 5 Minute Wrapup:
The topic also brings us to ask: Do buy-backs offer an arbitrage opportunity for retail investors? Ankit Shah has answered this question in one of the editions of Equitymaster Insider. You can access the issue here (requires subscription).
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