Report by- Sabyasachi Bhattacharya
Tech Mahindra announces buyback of 2.05 crore shares at 1956 rupees-
A share buyback is a corporate action in which a company takes back shares from its shareholders at a price higher than the market price. In doing so, the number of outstanding shares in the market reduces. This allows companies to invest in themselves. The board of Tech Mahindra has approved a buyback of up to 2.05 crore shares worth Rs 1,956 crore at Rs 950 per share. The record date for the same is March 6, the company said in a release to exchanges. Speaking on its first buyback, Manoj Bhat, CFO of Tech Mahindra, told CNBC-TV18 that the company will adopt a dividend plus buyback strategy. ” “We will conduct buybacks on an annual basis as done by our peers in the industry. It is tax efficient and we do not want excess cash with the company,” he said, adding that the IT major will still hold on to some cash for future acquisitions, as “this is a core feature of our growth strategy.” Bhat did not clarify whether promoters will participate in this process.
Indian markets had a Bullish day today-
Chart source- Upstox
Indian markets had a bullish day today. After 7 consecutive bearish days, the broader Index has shown signs of recovery for the past two days. In the pre-opening of Nifty, the index did not gain or lose any points. It was a flat start for the Index. After the opening of the market it stayed in a range bound motion for the morning. During the evening hours of the market, the Index rallied up. At the end of the day benchmark indices closed on positive note with Nifty finished around 10,800 level helped by buying in select pharma, metal and PSU banking names.
The Sensex was up 142.09 points at 35898.35, while Nifty was up 54.40 points at 10789.90. About 1555 shares have advanced, 971 shares declined, and 146 shares are unchanged.
Indiabulls Housing, Bajaj Finserv, Tata Motors, Dr Reddy’s Labs and Vedanta were the major gainers, while losers include BPCL, Bharti Infratel, Yes Bank, Infosys and Maruti Suzuki on the Nifty.
Except IT, all the sectoral indices ended in green. Midcap and smallcap also gained 0.8 percent and 1 percent respectively.
Let’s take a look at the performance of major Indices-
Global markets had a mixed reaction for today. European Indices DAX and CAC were seen in the Red. US market Index NASDAQ along with NIKKEI and other Asian Indices were in the Green.
Source- MoneyControl, Purple Trades Research Department
Key Points for Traders to watch out for while trading Nifty tomorrow-
- 10,750 is a short term support for Nifty.
- If Nifty breaks 10,750 then it has the potential to go down.
- 10,820 is a short term resistance for Nifty.
- If Nifty breaks 10,820 then it has the potential to go up.
Sectors that moved the market today- Data source- Moneycontrol
Gainers for today- Data source- Moneycontrol
Losers for today- Data source- Moneycontrol