Asian equity markets are lower today amid greater political uncertainty and as the euro climbed near to two-year highs on Thursday post the comments from the chief of the European Central Bank. The Shanghai Composite is off 0.21%, while the Hang Seng is down 0.26%. The Nikkei 225 is trading down by 0.25%. The US stocks ended mixed on Thursday.
Back home, share markets in India have opened the day on a flat note with a positive bias. The BSE Sensex is trading higher by 48 points, while the NSE Nifty is trading higher by 12 points. The BSE Mid Cap Index opened up by 0.1% while BSE Small Cap index opened the day up by 0.2%.
Sectoral indices have opened the day on a mixed note with information technology stocks and realty stocks leading the gainers. While healthcare stocks and bank stocks have opened in the red. The rupee is trading at 64.43 to the US$.
IT stocks opened the day on a mixed note with Wipro and Mphasis leading the gains. Wipro on Thursday posted a 1.2% rise in its consolidated net profit at Rs 20.77 billion for the April-June quarter.
Besides, the company’s board has announced a share buyback proposal of Rs 110 billion entailing 343 million equity shares at Rs 320 apiece.
Buybacks Over the Years
Tanushree Banerjee, Co-head of Research has written everything you need to know about the share buybacks in the IT sector and has offered insights on how the firms deal with the huge cash piles (Subscription Required). Here’s a snippet of what she wrote:
However, it’s important to understand that buybacks reduce the outstanding number of shares. Thus, the shareholders who don’t tender their shares will end up with a bigger piece of the pie.”
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