Share markets in India continued to witness selling pressure during closing hours and ended their trading session deep in the red. All sectoral indices ended in the red with stocks in the metal sector and auto sector witnessing most of the selling pressure.

At the closing bell, the BSE Sensex stood lower by 363 points (down 1%) and the NSE Nifty closed down by 118 points (down 1.1%). The BSE Mid Cap index ended the day down 1.3%, while the BSE Small Cap index ended the day down 0.7%.

The rupee was trading at 70.03 against the US$.

Asian stock markets finished on a negative note. As of the most recent closing prices, the Hang Seng was down by 2.8% and the Shanghai Composite was down by 1.2%. The Nikkei 225 was down 0.3%.

In the news from the macroeconomic space, Indian manufacturing activity expanded at a slower pace in December. This was seen as growth in new orders and output waned, despite factories cutting their prices.

Going by the numbers, the Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, declined to 53.2 in December, below November's 54.0 reading.

This, however, was above the 50 mark, which separates growth from contraction, for a 17th month. Also, manufacturing activity registered its strongest quarterly performance since late 2012.

December also saw the weakest increase in input costs for nearly three years, giving factories room to cut their prices for the first time since July 2017.Although new orders and output expanded at a slower rate last month, both remained well into expansion territory for more than a year, supported by weaker inflationary pressures.

Despite a strong performance in 2018, the survey indicated manufacturing firms were turning cautious. Hiring in December slowed as optimism waned amid uncertainty ahead of a national election scheduled for May.

It would be interesting to see how the manufacturing activity performance pans out in the coming months. Meanwhile, we will keep you updated on all the developments from this space.

In other news from macroeconomic space, as per a leading financial daily, the Goods and Services Tax (GST) Council is slated to meet on January 10 to discuss lowering GST on under-construction flats and houses to 5%.

Along with that, it is also going to consider hiking exemption threshold for small and medium enterprises.

The council, in its previous meeting on December 22, 2018, had rationalized the 28% tax slab and reduced rates on 23 goods and services.

NMDC share price was in focus today after the company said it will consider a share buyback proposal on January 8.

The company in its filing said that the meeting of board of directors of the company will be held on January 8, inter-alia, to consider the proposal for buyback of the fully paid-up equity shares of the company.

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.