TCS to buyback Rs 17,000 crore worth of shares at 4150 which is a premium of 15% - Daily Market Update- Equity 12 Oct 2023 | Globe Capital Market LTD.
TCS to buyback Rs 17,000 crore worth of shares at 4150 which is a premium of 15% – Daily Market Update- Equity 12 Oct 2023

TCS has announced a share buyback for Rs 17,000 Cr at a price of Rs 4,150 a share on October 11. The buyback price is at a premium of about 15 percent to the prevailing price. The company will be buying up to 4,09,63,855 shares representing 1.12 percent of the total equity. This is the fifth share buyback by India’s largest information technology services company in the last six years. The company bought Rs 66,000 Cr worth of shares in four such exercises.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.19% to 0.71%
  • European markets ended on a mix note.
  • Asian equity markets are trading in green.
  • GIFT Nifty is little changed (as on 8:30AM), Nifty futures likely to open around 19850 levels.


News highlights from across the globe

  • Equity markets in Asia are trading higher after U.S. shares gained for a fourth day as traders shrugged off a hotter-than-estimated wholesale inflation reading.
  • Contracts for U.S. stocks also advanced after the S&P 500 capped the longest winning streak since August on Wednesday as investors focused on less hawkish comments from Federal Reserve speakers.
  • Brent crude was trading at $85 a barrel and the yield on the 10-year US bond was trading at 4.56%


Important news updates from the domestic front

  • TCS board approved a buyback of 4.09 crore shares (1.12%) at Rs 4,150 apiece, aggregating to Rs 17,000 crore. An interim dividend of Rs 9 per share was also approved by the board, with Oct. 19 as the record date.
  • Larsen & Toubro received a Rs 64.98 lakh penalty order from the GST authority for disallowance of the transitional credit claimed.
  • Maruti Suzuki started exporting the Indian-manufactured off-roader Jimny 5-Door to Latin America, the Middle East, and Africa, among other destinations.
  • Adani Enterprises raised Rs 700 crore through an allotment of 70,000 NCDs on a private placement basis.
  • IndusInd Bank: SBI Mutual Fund gets RBI nod for acquiring up to a 9.99% stake in the company by Oct. 10, 2024.
  • Cipla manufacturing unit, InvaGen Pharmaceuticals, gets an EIR from the U.S. FDA post-inspection of the Long Island facility as voluntary action indicated.
  • RVNL emerges as the lowest bidder for the supply, installation, testing and commissioning of tunnel communication systems in Assam. The order is worth Rs 28.73 crore for a period of one year.
  • EMS has been awarded a contract worth Rs. 270.82 crore from Jaipur Heritage’s Municipality for providing, laying, jointing, testing and commissioning of sewerage systems and all ancillary work for a period of 10 years.


Nifty Overview & Outlook

The benchmark Nifty index extended gains for the third consecutive trading sessions and settled above 19800 levels after adding over 100 points to its previous closing values in an otherwise lackluster trading session.

Small cap index outperformed the benchmark as it was up nearly 1% while Midcap index settled on a positive note, up 0.34%.

All the sectoral indices, barring Nifty IT & PSU Bank index, tracked at NSE settled in green. Amongst them, Auto, FMCG, Media and Realty index settled higher nearly 1% each.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 19650-19600 zone.


Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty, Banknifty and Finnifty futures with decrease in open interest by 3.9%, 4.8% and 3.5% respectively.

On sectoral front, long buildup was seen in Cement, Chemical, Metals, Media and Textile stocks. Short covering was seen in Automobile and Power stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 19600 PE and 20000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 422 Cr in the cash segment, bought stocks futures and index future worth Rs 936 Cr and Rs 1120 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1032 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19900-19960; Supports 19700-19600

Banknifty – Resistances 44900-45100; Supports 44400-44200

Finnifty – Resistances 20090-20190; Supports 19850-19950






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