Share markets in India are presently trading on a strong note.
The BSE Sensex is trading up by 527 points, up 1.3 %, at 40,400 levels.
Meanwhile, the NSE Nifty is trading up by 142 points.
Wipro and TCS are among the top gainers today. Eicher Motors and ONGC are among the top losers today.
The BSE Mid Cap index is trading up by 0.5%.
The BSE Small Cap index is trading up by 0.4%.
On the sectoral front, stocks in the energy sector and metal sector are witnessing selling pressure.
IT stocks, on the other hand, are trading in green.
US stock futures are trading higher today, indicating a positive opening for Wall Street indices.
Nasdaq Futures are trading up by 68 points (up 0.6 %), while Dow Futures are trading up 160 points (up 0.6 %).
Gold prices are trading down by 0.2% at Rs 50,128 per 10 grams.
The rupee is trading at 73.31 against the US$.
Among the buzzing stocks, today is Wipro Ltd.
In an exchange filing on October 7, the IT company said it plans to buy back its shares on October 13. This is the fourth time in the last five years that the company has bought back its shares.
Wipro had previously announced a buyback worth Rs 105 billion in 2019.
Note that a company can buy back shares of up to 10% of its net worth without the approval of shareholders and can buy up to a fourth of its net worth with shareholder approval. Also, a buyback can be done only once in 12 months.
Indian IT companies have been proactively returning excess cash on their books to shareholders.
Wipro's largest peer, TCS, also announced a Rs 160 billion buyback on Wednesday - its third such exercise in the last four years, while also announcing a second interim dividend of Rs 12 per share.
As on September 30, the company had net cash reserves of Rs 299 billion. It is estimated that even if Wipro spends Rs 120 billion on its next buyback through the tender route at Rs 280 per share, it will be a huge trigger for its earnings in the subsequent quarters.
Wipro share price is currently trading up 9.3%
In news from the metals and mining sector, the reverse book building exercise of Vedanta Resources Ltd (VRL) saw over 171.5 million shares being tendered from the BSE and NSE till Wednesday.
The company had announced to kick start the Reverse Book Building (RBB) process on October 5 in order to delist Vedanta Ltd (Vedanta) from stock exchanges.
As per the data, of the 171.5 million shares were tendered in the first three days of the five-day reverse book building process with about 84.9 million shares tendered in the price range of Rs 138 to 140 a share.
Off the 171.5 million shares offered to be tendered, 113.5 million shares have come in at an asking price of up to Rs 140 a share.
Vedanta promoters are seeking to buy 1.69 billion shares or 47.67% stake held by the public to delist the firm and have raised US$3.15 billion to fund the delisting.
According to stock exchange data, the maximum price sought for tendering shares is Rs 999 apiece.
Industry sources have said that Vedanta may not be able to raise any more money to fund the delisting exercise as lenders have put a cap on any further mobilization after the company reported a 23.5% drop in quarterly profit. Sales fell 25.9 % to Rs 156.87 billion, while the net profit declined 23.5% to Rs 10.33 billion.
Vedanta share price closed at Rs 123.6 on the BSE on Wednesday, a loss of 10.4% over the previous day's close.
The final exit offer price will be decided on the basis of bids placed by public shareholders, taking the shareholding of promoters to at least 90% of the paid-up equity share capital of the company.
How this pans out remains to be seen. Meanwhile, we will keep you updated on all the developments form this space.
Speaking of the metal sector, note that metal stocks have rebounded sharply from their March lows, with a revival in both domestic and global demand.
Have a look at the chart below which shows returns of the major sectoral indices since 23 March 2020.
As per Apurva Sheth, the secret behind the rally in metals is nothing else but its greed and fear cycle. The greed phase in metal stocks will last till September 2021.
As per Apurva, the sector has a lot more ground to cover up in a short span of time.
He has been sharing with you such greed and fear cycles in stocks, currencies, and even commodities.
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