Sensex, Nifty Gain For Second Day Led By IT Stocks
Closing Bell: Sensex Rises Over 150 Points Led By Infosys, RIL
Indian equity benchmarks rose for second day in a row led by Reliance Industries, Infosys, TCS and Hindustan Unilever.
The Sensex rose 0.44 percent or 157 points to 35,807 and the NSE Nifty 50 Index advanced 0.47 percent or 50 points to 10,780.
Ten of 19 sector gauges compiled by BSE ended higher led by the S&P Information Technology Index’s 1.32 percent gain. On the flipside, the S&P BSE Auto Index was top loser, down 0.37 percent.
Mid- and small-cap shares witnessed buying interest as the S&P BSE MidCap and S&P BSE SmallCap Indices rose 0.3 percent each.
HDFC Group Pips Tata Group For First Time
The combined market capitalisation of five companies from the financial services provider stood at Rs 10.4 lakh crore as of Dec. 26 close. That was higher than the Rs 10.38 lakh crore market value of 25 salt-to-software companies of the Tata Group. Today, they kept swapping the lead through much of the trading session till 2:40 p.m.
Infosys Extends Gains On Clarification It May Buy Back Shares Worth $1.6 Billion
Shares of the country's second largest IT company rose as much as 2.98 percent, the most in two weeks, to Rs 663.25 after it clarified that it may buyback shares worth $1.6 billion.
“We draw your attention to the capital allocation policy approved by the board of directors in their meeting held on April 13, 2018. The Board decided to retain the policy of returning up to 70 percent of the free cash flow of the corresponding Financial Year in such manner, as may be decided by the Board from time to time, subject to applicable laws and requisite approvals, if any”, Infosys said in an exchange filing.
Out of the cash on the balance sheet, the board identified an amount of up to Rs 13,000 crore to be paid to shareholders in the following manner:
- A special dividend of Rs 10 per share resulting in a payout of approximately Rs 2,600 crore in June 2018; and
- Identified an amount of up to approximately Rs 10,400 crore to be paid out to shareholders for the Financial Year 2019, in such a manner, to be decided by the Board, subject to applicable laws and requisite approvals, if any, the filing added.
F&O Check: Bank Bears In A Fix As Premium On Nifty Bank 27,000 Put Slumps
Traders who had bet that the gauge of banking shares would fall were caught on a wrong foot as the Nifty Bank's 27,000 put option contract, which was among the most active option contracts on NSE, slumped over 50 percent ahead of December F&O expiry.
Premium on the contract plunged 77 percent to Rs 21.90. Over 11.49 lakh shares were added to the open interest which stood at over 15 lakh shares.
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Selan Exploration Surges After Board Approves Buyback Plan
Shares of the Delhi-based oil exploration company rose as much as 10.43 percent to Rs 192.10 after its board approved share buyback proposal and interim dividend of Rs 5 per share.
The company will buy back maximum of 8.66 percent of capital at Rs 300 per share for total consideration of Rs 25 crore, Selan Exploration said in an exchange filing.