Indian Indices Trade Rangebound; Sun Pharma & Tata Steel Top Gainers

Share markets in India are presently trading on a flat note ahead of June CPI inflation and factory data due later today.

Sectoral indices are trading mixed with stocks in the metal sector and realty sector witnessing buying interest while telecom stocks and capital goods stocks are witnessing selling pressure.

The BSE Sensex is trading down by 15 points, while the NSE Nifty is trading down by 2 points. The BSE Mid Cap index is trading up by 0.5% and the BSE Small Cap index is trading up by 0.4%.

The rupee is trading at Rs 68.56 against the US$.

Market participants are tracking Infosys share priceIndusInd Bank share price, and TRF share price as these companies are set to announce their Q1FY20 results later today.

In news from the textiles sectorKPR Mill share price is witnessing selling pressure today after the company withdrew its buyback proposal due to the tax proposed on buyback obligations in Budget 2019.

Shares of the company dipped around 6% in early trade today on back of the above news.

On April 18, 2019, the company had proposed and approved buyback of 3.8 million equity shares, representing 5.2% of the total share capital, at a price of Rs 702 per share for a consideration not exceeding Rs 2633.1 million.

In a press release, the company said, "we have today filed with markets regulator our communication conveying that the increase in the amount of buyback obligation due to the tax proposal in the Finance Bill 2019 was neither contemplated nor prevailing at the time of the consideration and the approvals of the board and shareholders".

Ankit Shah, in his premium newsletter Insider, has explained how Union Budget 2019 spells bad news for buyback traders. You can read it here.

Last week, Finance Minister Nirmala Sitharaman proposed an additional tax of 20% in case of buyback with a view to discourage the practice of avoiding dividend distribution tax (DDT).

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