X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sensex Ends Marginally Higher; Telecom and Oil & Gas Stocks Witness Buying
Fri, 14 Dec Closing | Monish Vora, TM Team

Indian share markets continued to trade near the dotted line during closing hours and ended the day marginally higher. Gains were largely seen in the telecom sector and oil & gas sector, while healthcare stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood higher by 33 points (up 0.1%) and the NSE Nifty closed higher by 14 points (up 0.1%). The BSE Mid Cap index ended the day up by 0.1%, while the BSE Small Cap index ended the day flat.

Asian stock markets finished on a negative note as of the most recent closing prices. The Hang Seng stood down by 1.6% and the Nikkei was trading down by 2%. The Shanghai Composite stood lower by 1.5%.

European markets were also trading on a negative note. The FTSE 100 was down by 0.9%. The DAX was down by 1.1% while the CAC 40 was down by 1%.

--- Advertisement ---
Don't Order This from Amazon! (Last Day to Claim a Virtually Free Copy)

Equitymaster's Secrets is one of the most popular books we've ever published!

Over 20,000 of our readers have had the opportunity to benefit from the secrets it reveals… lessons and strategies we've learnt from over 20 years of successful stock-picking.

And even though you can easily order a copy on Amazon (it costs Rs 1,450)… we'd rather you didn't.

Instead, we'll have a virtually free copy of the latest edition delivered to you (anywhere in India), if you want…

Just let us know you're in.

Important: We end this offer at 11:59 PM, tonight. Make sure you claim your book before that.
------------------------------

The rupee was trading at 71.81 to the US$ at the time of writing.

From the energy space, Indian Oil Corporation share price was in focus today. Shares of the company witnessed buying interest after the company announced a buyback of 3.06% equity share at a price of Rs 149 per stock for a consideration not exceeding Rs 44 billion.

The buyback decision was taken by the company's board in its meeting held yesterday.

The company's board also recommended an interim dividend of 67.5% (i.e. Rs 6.75 per share) for FY19.

Speaking of buybacks, 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.

Who Benefits from Such Buybacks?

Here's what Tanushree Banerjee, co-head of Research, wrote about it in one of the editions of The 5 Minute WrapUp...

  • Look at the history of buybacks since 2002. Logically promoters should offer to buyback shares at a premium when the stock is undervalued. And this logic held true until recently. The number of buybacks peaked when market valuations were low. And in times of peak valuations (like 2007 and 2011), promoters refrained from doing so.

    But not this time. The trend of rising buybacks in the last two years, resembles the sentiment of a momentum investor. The appetite to buy shares kept rising with the rising markets. And the latest buybacks of stocks like TCS and MOIL, came at a time, when neither the broader index (Sensex) nor the stocks themselves, are undervalued.

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 reason behind the buyback must be investigated. At the end of the day, an increase in earnings should be more a function of the inherent robustness of the business, as that's what will help it continue to grow at a healthy pace.

The topic also brings up the question: 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).

In the news from the macroeconomic space, according to the government data released today, Inflation based on wholesale prices (WPI) fell to a three-month low of 4.64% in November. This was seen as prices of food articles, especially vegetables, softened.

The Wholesale Price Index (WPI)-based inflation stood was 5.28% in October and 4.02% in November last year.

As per the data, food articles witnessed softening of prices with deflation at 3.31% in November, against 1.49% in October. Vegetables also became cheaper with deflation at 26.98% in November, compared to 18.65% in October.

Inflation for the fuel and power basket however continued to rule high at 16.28% on account of lowering of prices of petrol and diesel. But this was lower than 18.44% in October.

How this pans out in the coming months remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

In the news from the banking space, Yes Bank share price was in focus today after a report suggested that Brahm Dutt could be a part-time Non-Executive Chairman of the lender.

Currently Brahm Dutt is serving as Independent Director of the bank since July 24, 2013.

The lender yesterday said it is on track to name new Managing Director and Chief Executive Officer within the deadline given by the Reserve Bank of India (RBI).

The bank said its nomination and remuneration Committee (N&RC) and Board of Directors have finalised the recommendation for non-executive part-time chairman position and shall be promptly seeking requisite approvals from the RBI.

It further added that the 'Search & Selection Committee' (SSE) has discussed and deliberated on the final shortlisted external and internal candidates presented by Korn Ferry post their comprehensive interviews and assessment.

The final recommendation will be submitted to the RBI by the board of directors post their next meeting scheduled on January 9, 2019.

The development comes as the lender was hit by a series of resignations lately.

The stock of the bank plunged to its lowest levels in over two years earlier this month after credit rating agencies ICRA and CARE ratings downgraded the bank's debt instruments.

ICRA downgraded domestic long-term ratings of the bank's senior debt instruments to 'ICRA AA' from 'ICRA AA+' and its subordinate debt instruments to 'ICRA AA-' from 'ICRA AA'.

Meanwhile, CARE Ratings cut domestic ratings of Yes Bank's senior debt instruments to 'CARE AA+' from 'CARE AAA' and subordinate debt instruments to 'CARE AA' from 'CARE AA+'.

Earlier last week, Moody's also downgraded the bank's foreign currency issuer rating and changed the outlook on the bank to 'negative' from 'stable'.

To know more about the company, you can access to Yes bank Q2FY19 result analysis and Yes bank Stock Analysis on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Sensex Ends Marginally Higher; Telecom and Oil & Gas Stocks Witness Buying". Click here!

  

Stock Market Updates

SJVN Plunges by 5%; BSE POWER Index Down 0.6% (Today's Market)

Apr 25, 2019 03:32 PM

SJVN share price has plunged by 5% and its current market price is Rs 24. The BSE POWER is down by 0.6%. The top gainers in the BSE POWER Index are CG POWER & INDUSTRIAL (up 3.7%) and SIEMENS (up 1.1%). The top losers is SJVN (down 5.1%)..

SADBHAV ENGINEERING Surges by 6%; BSE CAPITAL GOODS Index Up 0.3% (Today's Market)

Apr 25, 2019 01:08 PM

SADBHAV ENGINEERING share price has surged by 6% and its current market price is Rs 240. The BSE CAPITAL GOODS is up by 0.3%. The top gainers in the BSE CAPITAL GOODS Index is SADBHAV ENGINEERING (up 5.5%). The top losers are SKF INDIA (down 0.1%) and BHEL (down 0.1%).

Sensex Trades Higher; Ultratech Cement Surges on Strong Q4 Result (Today's Market)

Apr 25, 2019 12:30 pm

The BSE Sensex is trading up by 151 points, while the NSE Nifty is trading up by 56 points.

BHARTI INFRATEL Plunges by 5%; BSE 500 Index Up 0.4% (Today's Market)

Apr 25, 2019 12:14 PM

BHARTI INFRATEL share price has plunged by 5% and its current market price is Rs 298. The BSE 500 is up by 0.4%. The top gainers in the BSE 500 Index are INDIABULLS REAL EST (up 6.9%) and GRASIM (up 6.5%). The top losers is BHARTI INFRATEL (down 5.2%)..

RELIANCE INFRA Surges by 5%; BSE POWER Index Up 0.7% (Today's Market)

Apr 25, 2019 11:08 AM

RELIANCE INFRA share price has surged by 5% and its current market price is Rs 127. The BSE POWER is up by 0.7%. The top gainers in the BSE POWER Index is RELIANCE INFRA (up 5.0%). The top losers are SIEMENS (down 0.1%) and JSW ENERGY (down 0.1%).

INDIABULLS REAL EST Surges by 5%; BSE REALTY Index Up 0.5% (Today's Market)

Apr 25, 2019 10:26 AM

INDIABULLS REAL EST share price has surged by 5% and its current market price is Rs 122. The BSE REALTY is up by 0.5%. The top gainers in the BSE REALTY Index is INDIABULLS REAL EST (up 5.2%). The top losers are PHOENIX MILL and DLF (down 0.3%).

View More Indian Share Market News

Most Popular

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

My Master Series on How to Trade Election 2019(Profit Hunter)

Apr 16, 2019

For 30 years he has watched how elections impact the markets, and practiced how to profit from it. Now he is here...telling you everything. Read on...

Election Series: Follow the World's Biggest Traders To See Where the Money Flows(The 5 Minute Wrapup)

Apr 17, 2019

20% of all the traders bring in 80% of the money. Watch these 20% and you get a working idea of which way the wind is blowing.

A Letter to You from India's No. 1 Trader(The 5 Minute Wrapup)

Apr 15, 2019

It's our great pleasure to introduce Vijay Bhambwani to our readers - we consider Vijay to be India's best trader. Read on to find out why...

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Apr 25, 2019 (Close)

MARKET STATS