Share markets in India are presently trading on a negative note following weakness in global peers.
Global share markets edged lower amid concerns about new pandemic lockdowns in Europe and after reports about financial institutions allegedly moving illicit funds, hurting global banking stocks.
The BSE Sensex is trading down by 241 points at 37,800 levels.
Meanwhile, the NSE Nifty is trading down by 88 points.
ONGC and SBI are among the top losers today. Meanwhile, Asian Paints is among the top gainers today.
The BSE Mid Cap index is trading down by 1.5%.
The BSE Small Cap index is trading down by 2%.
On the sectoral front, realty stocks are witnessing most of the selling pressure.
US stock futures are trading lower today. Nasdaq Futures are trading down by 61 points (down 0.5%), while S&P Futures are trading down by 16 points (down 0.4%).
The rupee is trading at 73.45 against the US$.
Gold prices are currently trading up by 0.1% at Rs 50,527.
Speaking of stock markets, note that the market regulator recently modified the scheme characteristics of multi cap funds. Henceforth, all multi-cap funds will be required to invest at least 25% of their portfolios in equity and equity-related instruments of large-cap, mid-cap and small-cap companies, respectively.
Moving on to stock-specific news...
HSIL is among the top buzzing stocks today.
Shares of the company hit a fresh 52-week high of Rs 79.15, up over 9% on the BSE after its board approved buyback of shares at Rs 105 per share for an aggregate amount of Rs 700 million via the open market.
"At the maximum buyback price and for maximum buyback offer size, the indicative maximum number of equity shares to be bought back would be 6.67 million equity shares which are 9.22% of the total number of equity shares of the company," HSIL said in an exchange filing.
If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares to be bought back could exceed the maximum buyback shares, but will always be subject to the maximum buyback offer size, the company added.
HSIL share price is presently trading up by 9.1%.
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.
Moving on to news from the banking sector, HDFC Bank on Monday said it is aware of a complaint filed against the bank and its three employees in the United States recently, but denies the allegations and intends to "defend itself vigorously".
The bank expects its response to the lawsuit to be due in early 2021, it said in a regulatory filing.
"The lawsuit, which was filed by a single small security holder who seeks to represent a class of the bank's security holders, is based on allegations that the security holder claims caused a temporary decline in the bank's ADR stock price in July 2020," the bank said.
Last week, it was reported that Rosen Law Firm's complaint against HDFC Bank pertains to losses suffered by some investors because of allegedly false and misleading statements by the lender. The case concerns reports that HDFC Bank car loan customers were forced to buy vehicle tracking devices from 2015 to 2019.
The class-action filing on Rosen Law's website says, "throughout the class period, defendants made materially false and misleading statements regarding the bank's business, operational and compliance policies."
The lawsuit pointed out that the HDFC Bank's ADR fell US$ 1.37 per share to close at US$ 47.02 per share on July 13 after it was reported in media that the bank was probing its lending practice in the vehicle financing operations involving the unit's former head Ashok Khanna.
The lawsuit added that investors who had acquired the shares at artificially inflated prices during the class period suffered significant losses and damages, after the revelation.
HDFC Bank share price is presently trading down by 0.3%.
Note that, HDFC Bank is one that has always adapted to changing times.
HDFC Bank wanted to transform itself from a leader in physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.
In 2004, only 10% of customer transactions were initiated through the internet and mobile. The number has gone up to 92% in 2019.
It is a great example of a company that has taken advantage of its scale and embraced disruption rather than fear it.
These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long-run.
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