Image Source: Pixabay
 

After opening the day on a positive note, Indian share markets turned volatile as the session progressed and ended mixed.

Indian benchmark surrendered early gains on Tuesday, led by losses in energy, metals, and auto stocks while investors turned their focus to retail inflation data for August due later in the day.

At the closing bell, the BSE Sensex stood higher by 94 points.

Meanwhile, the NSE Nifty closed 3 points lower.

TCS and Infosys were among the top gainers today.

BPCL and NTPC, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 20,035, down by 83 points, at the time of writing.

Broader markets are trading on a positive note. The BSE Mid Cap index is trading 2.9% lower and the BSE Small Cap index is trading higher by 4%.

Sectoral indices ended on a mixed with stocks in the banking sector and the IT sector is witnessing buying. Meanwhile, stocks in the power sector and realty sector witnessed selling pressure.

Shares of Maruti Suzuki and TCS hit their 52-week high today.

Asian shares ended mixed today. The Nikkei index rose 0.9%. The Hang Seng index shed 0.4%, while the Shanghai Composite ended 0.2%.

In commodity markets, gold prices are trading 0.2% lower at Rs 58,839 per 10 grams today.

Meanwhile, silver prices are trading marginally lower at Rs 71,861 per 1 kg.
 

Why L&T share price is rising

In news from the engineering sector, Larsen & Toubro's (L&T) shares jumped 4% higher and reached a new record high at Rs 2,997.75.

This surge followed L&T's decision to raise the floor price for its Rs 100 billion (bn) mega-buyback program by almost 7%, setting it at Rs 3,200 per share, compared to the previous Rs 3,000 per share.

The motivation for this floor price revision stemmed from the remarkable increase in L&T's share price since the initial announcement of the buyback program on 25 July.

During this period, L&T shares gained nearly 15%, surpassing their previous record high of Rs 2,928.70.

The previous floor price offered only a modest 3.7% premium over the closing price of Rs 2,894.20 on the preceding Monday.

In contrast, the new floor price now offers investors a substantial premium of nearly 11% over the stock's Monday closing price.

However, the specific timeline for the opening and closing of the buyback issue has yet to be officially announced.

This marks L&T's second attempt at offering a buyback, following an unsuccessful attempt in 2018.

L&T's share price is up 24% in 2023 so far.

This is the first buyback of shares in the firm's 85-year history. 
 

Why did SpiceJet Slump 5% today?

Moving on to news from the airline sector, shares of SpiceJet dropped nearly 5% on 12 September, post the assurance of repayment of Rs 1 bn to the former promoter by the airline.

The airline said it would complete the payment of Rs 1 bn to former promoter Kalanithi Maran by 12 September. It would also make a payment of US$ 1.5 million i.e., Rs 124 m in the Credit Suisse case by a court directive.

To date, SpiceJet has already paid a total of $8 million to Credit Suisse.

The company's shares are down by more than 25% in 2023. 
 

Lupin's business transfer agreement

Moving on to news from the pharma sector, shares of Lupin opened 1.3% higher today. This comes a day after the company announced plans to enter into a business transfer agreement with its subsidiary Lupin Manufacturing Solutions (LMSL).

Under the business transfer agreement, pharma major Lupin will move the two active pharmaceutical ingredients (APIs) manufacturing sites at Dabhasa and Visakhapatnam to the subsidiary.

Additionally, they also plan to carve out select R&D operations, including fermentation, at Lupin Research Park, Pune.

Through this movement, the company expects to get Rs 7.5-8.5 bn, which is subject to movement in working capital & other items. The agreement is expected to be entered into in October 2023.

Lupin stands among the pharma companies in India that have solid growth in sales and profits and a high Return on Equity (ROE).

More By This Author: