Sensex Ends 181 Points Higher; Telecom & Metal Stocks Witness Buying

A buyback can only be done once in 12 months and Wipro last had a share buyback programme in November-December 2017. Like Infosys share price, Wipro is coming off the one-year temporary prohibition for a share buyback and is expected to buy back shares at a 20-25% premium to the current share price.

Speaking of buybacks, the number of buyback offers in 2017-18 were at an all-time high. Never, in the last two decades, had Indian markets seen fifty-nine companies announcing buyback plans.

But what is truly surprising is that unlike in the past, the buybacks this time seem skewed in favor of short-term investors rather than long-term ones.

Who Benefits from Such Buybacks?

We believe, 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 the news from the commodity space, oil prices rose by more than 1%, shaking off earlier losses, after China said it would hold talks with the US government next week to look for solutions to a trade dispute between the world's two biggest economies.

The two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars' worth of goods and stoking fears of a global economic slowdown.

Crude oil prices, however, are on a decline over the last few weeks over concerns of a supply glut.

Oil prices fell in early trade after the US showed signs of following Asia into an economic slowdown, although supply cuts by producer club the Organization of Petroleum Exporting Countries (OPEC) kept declines in check.

OPEC oil supply fell by 460,000 barrels per day (bpd) between November and December, to 32.7 million bpd, as top exporter Saudi Arabia made an early start to a supply-limiting accord, while Iran and Libya posted involuntary declines.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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