TCS sets Nov 25 as record date for Rs 17,000 Cr buyback - Daily Market Update - Equity 16 Nov 2023 | Globe Capital Market LTD.
TCS sets Nov 25 as record date for Rs 17,000 Cr buyback – Daily Market Update – Equity 16 Nov 2023

Tata Consultancy Services Ltd has set Nov 25 as the record date for its Rs 17,000 crore buyback. India’s largest IT services firm will buy back up to 4.09 crore shares, representing 1.12% of the total paid-up equity share capital, it announced in October 2023. The offer is the company's fifth such action since 2017. The buyback price is set at Rs 4,150 apiece.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on flat to positive note, up in range 0.07% to 0.16%
  • European markets ended on positive note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19751 levels (as on 8:30AM).


News highlights from across the globe

  • Asia markets were mix following further gains for U.S. stocks, while treasuries pulled back as investors gauged fresh signs of resilience in the world’s largest economy.
  • The S&P 500 gained 0.2%, helped along by favorable corporate earnings and bets Federal Reserve tightening has reached the peak.
  • Brent crude was trading at $82 a barrel and the yield on the 10-year US bond was trading at 4.52%.


Important news updates from the domestic front

  • Bajaj Finance: The Reserve Bank of India barred Bajaj Finance from lending under its “eCOM” and “Insta EMI Card” products. The regulator said that it would review the supervisory restrictions after the company rectifies the deficiencies to the RBI’s satisfaction.
  • TCS has set Nov 25 as the record date for its Rs 17,000 crore buyback. The company will buy back up to 4.09 crore shares for Rs 4,150 apiece.
  • Dabur two foreign subsidiaries, Dabur International and Dermoviva Skin Essentials have been removed as a defendant in multiple lawsuits filed in a U.S. court over allegations that their hair-relaxer products caused ovarian cancer, uterine cancer and other related health issues.
  • IIFL Finance will invest up to Rs 200 crore in arm IIFL Samasta Finance by way of subscription to 7,47,94,315 fully paid up equity shares of face value of Rs 10 each, at a premium of Rs. 16.74 per share, through rights issue.
  • Suzlon Energy announced the RLMM listing of its S144 – 3 MW series of wind turbines which are extendable to 3.15 MW making them  a formidable force in the market. This listing marks an important  milestone for successful commercialization of the product.
  • One 97 Communications announced a partnership with global travel technology company Amadeus for the next three years. It will integrate Amadeus’s expansive travel platform, enhancing the travellers’ experience from search to booking, and payments.
  • RateGain Travel Technologies opened its qualified institutions placement issue on Nov. 15. The floor price has been fixed at Rs 676.66 per share.


Nifty Overview & Outlook

Tracking positive cues from the global peers, benchmark Nifty index opened with a gap on the higher side and settled sharply higher at the 19675 level after adding nearly 250 points to its previous closing values.

The broader market performed in line with the benchmark as Nifty Small & Midcap was up 0.96% and 1.32% respectively; resultant, strong market breadth.

All the sectoral indices tracked at NSE settled higher. Amongst them, Nifty IT and Realty were at the top of the tally, rose over 2.5% each followed by Nifty Auto, Metal and Oil & Gas index that were up in range 1.17% to 1.73%.

Going ahead, we reiterate our positive view on Nifty index and suggest traders to maintain buy on dip trading strategy till it is trading above 19300 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty and Finnifty futures with increase in open interest by 2.1% and 20.1% respectively whereas short covering was seen in Banknifty future with decrease in open interest by 4.5%.

On sectoral front, long buildup was seen in Technology, Power, Banking and Realty stocks whereas short covering was seen in Chemical, Metals and Capital Goods stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19600 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 550 Cr in the cash segment, bought stocks futures and index futures worth Rs 4732 Cr and Rs 347 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 610 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19850-19930; Supports 19600-19520

Banknifty – Resistances 44700-44950; Supports 43850-43600

Finnifty – Resistances 19200-20020; Supports 19640-19530




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