Engineers India Share Buyback, Growth in the IT Sector, and Buzzing Stocks Today

Thu, 24 Dec Pre-Open

   Previous Close   

   09:30 am   

   12:30 pm   

   Closing   

Indian share markets ended on a strong note yesterday.

Benchmark indices edged higher as a sharp rally in IT stocks helped overshadow weak global investor sentiment stemming from the rapid spread of a new strain of the coronavirus in the United Kingdom.

Sentiment also improved after reports suggested that India is likely to approve Oxford/AstraZeneca's coronavirus vaccine for emergency use by next week.

At the closing bell yesterday, the BSE Sensex stood higher by 437 points (up 0.95%).

The NSE Nifty closed higher by 135 points (up 1%).

HUL and Infosys were among the top gainers.

The BSE Mid Cap index and the BSE Small Cap index ended up by 2.4% and 2.7%, respectively.

All sectoral indices ended in green. Gains were largely seen in the IT sector, FMCG sector and realty sector.

Gold prices for the latest contract on MCX were trading down by 0.1% at Rs 50,051 per 10 grams at the time of closing stock market hours yesterday.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

Speaking of stock markets, in his latest video, India's #1 trader Vijay Bhambwani shares the reason behind the recent rally in silver prices and how you can profit from this opportunity.

Tune in here to find out more:

Top Stocks in Focus Today

Majesco will be among the top buzzing stocks today.

Majesco share price was locked in 5% upper circuit at Rs 12.20 on the BSE yesterday after the stock turned ex-interim dividend for Rs 974 per share.

The company has fixed Friday, December 25, 2020 as record date for the purpose of payment of interim dividend.

The board of directors of Majesco, at its meeting held on December 15, 2020, had approved an interim dividend of Rs 974 per equity share of face value of Rs 5 each for the financial year 2020-2021.

Apart from Majesco, shares of other IT companies will also be in focus today. The BSE IT index hit fresh record high yesterday amid hopes of more large deal wins, which would further help accelerate the sector's growth momentum.

Shares of Tata Consultancy Services (TCS), Infosys, HCL Technologies, Tech Mahindra, L&T Infotech and Mphasis hit their respective fresh record highs.

Wipro surged over 5% yesterday to its 52-week high, after the company announced a significant strategic digital and IT partnership deal with METRO AG, the leading global wholesale company that is redefining the food service distribution industry.

Market participants will also track Bajaj Auto share price today as the country's third-largest two-wheeler manufacturer, has announced the signing of a memorandum of understanding (MoU) with the Maharashtra government for setting up a factory that will make the Chetak and KTM, Husqvarna and Triumph motorcycles.

The proposed investment for this new facility, which will come up next to Bajaj's existing facility at Chakan near Pune, will be Rs 6.5 billion. The unit is expected to commence production in 2023.

The announcement by Bajaj Auto comes at a time when its rivals like Honda Motorcycle and Scooter India and Suzuki Motorcycle have adopted a 'go-slow' approach as far as new investments are concerned.

IPO Buzz: Anthony Waste Handling Cell IPO Oversubscribed by 7 Times

In latest developments from the IPO space, the public offer by Antony Waste Handling Cell was oversubscribed by 7 times on December 23, the final day of bidding.

The company has joined the likes of Burger King India and Mrs Bectors Food Specialities to have received oversubscription in a few hours of opening for subscription.

Investors put in bids for 46.9 million equity shares against offer size of 6.7 million equity shares (excluding anchor book), the subscription data available on the exchanges showed.

Retail investors continued to support the issue from the day one of bidding as their reserved portion was subscribed 12.53 times and that of non-institutional investors 1.64 times.

The portion set aside for qualified institutional buyers was subscribed 1.49 times.

The company has fixed price band for its public issue at Rs 313-315 per share.

Ahead of the IPO, the company garnered Rs 899.9 million from 10 anchor investors at an upper end of price band. Massachusetts Institute of Technology was the top anchor investor, accounting for 44.44% of the total anchor allotments.

Note that Antony Waste Handling is launching its IPO for the second time this year, after having to withdraw its maiden attempt in April due to tepid investor response amid the Covid-19 outbreak.

How the above IPO performs on listing day remains to be seen.

Engineers India Shareholders Approve Rs 5.8 Billion Share Buyback Plan

Shareholders of state-owned Engineers India Ltd (EIL) have approved buyback of nearly 70 million shares for about Rs 5.8 billion with a view to return surplus cash to shareholders, the largest being the Government of India.In a stock exchange filing, EIL said it got the support of 99.9% voting shareholders for the resolution seeking approval for buyback of equity shares at Rs 84 apiece.

The buyback will help the company to return surplus cash to its members holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to members.Note that the offer price of Rs 84 per share is at a premium of 20.5% on BSE and 19.6% on NSE over the volume-weighted average price of the equity share for 26 weeks preceding the November 12 board approval.The government intends to participate in the buyback and tender up to such extent that the minimum shareholding of the promoter post buyback remains at 51% of the post buyback equity share capital of the company.EIL said since the buyback is more than 10% of the total paid-up equity share capital and free reserves of the company, an approval of the shareholders by way of a special resolution was sought.

The government has asked at least eight state-run companies to consider share buybacks as it scours for ways of raising funds to rein in its fiscal deficit. The firms asked to consider share buybacks include miner Coal India, power utility NTPC, and minerals producer NMDC.The government wants public sector undertakings to either meet their targets for capital expenditure or "reward the shareholder in the form of a dividend" or share buyback.

Speaking of buybacks, 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:

• 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.

We will keep you posted on more updates from this space. Stay tuned.

And 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

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers