Sensex Trades Marginally Lower; Realty And Auto Stocks Drag

Share markets in India are presently trading on a negative note. Sectoral indices are trading mixed with stocks in the IT sector witnessing buying interest while realty stocksmetal stocks and auto stocks are witnessing maximum selling pressure.

The BSE Sensex is trading down by 90 points (down 0.3%), while the NSE Nifty is trading down by 32 points (down 0.3%). The BSE Mid Cap index is trading down by 0.3% and the BSE Small Cap index is trading down by 0.7%.

The rupee is trading at Rs 70.16 against the US$.

In the last few sessions, the rupee has been strengthening against the US$. Last week, dollar came under pressure after the Federal Reserve in its policy statement mentioned that rate hike in the coming year could be restricted to two compared to earlier estimates of three rate hikes next year.

In the news from the IT sectorInfosys share price is witnessing buying interest today on reports that the IT major may soon consider a share buyback worth Rs 112 billion.

Reports state that some of the founding family members could also tender shares in the buyback. The share buyback could happen at around 20-25% premium to the current market price, according to news reports.

The IT major is coming off a one-year temporary prohibition for the share buyback that ends in December. Reportedly, the buyback announcement could be a part of the board resolution that meets on January 11 to consider the audited quarterly financial results.

As per an article in The Economic Times, the buyback could be executed faster this time.

Here's an excerpt from the article:

The company's successive buyback, subject to shareholder approval, could be executed much faster this time around as Infosys has voluntarily delisted its American depositary shares from the Euronext Paris and Euronext London exchanges in March.

Infosys share price is presently trading up by 1.3%.

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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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