Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the energy sector and metal sector witnessing maximum buying interest. Telecom stocks are trading on a negative note.
The BSE Sensex is trading up 102 points (up 0.3%) and the NSE Nifty is trading up 37 points (up 0.3%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 67.26 to the US$.
From the banking sector, Union Bank of India share price is witnessing selling pressure today as the public-sector lender reported a net loss for the fourth quarter on the back of higher bad loan provisioning.
PC Jeweller share price is trading on a volatile note today. The stock of the company witnessed buying interest during morning hours today after the board approved share buyback of Rs 4.2 billion. However, the momentum was short-lived as the stock witnessed selling pressure thereafter and went to trade marginally lower during noontime.
The company in a BSE filing said that it will buy back up to 1,21,14,286 fully paid-up shares of Rs 10 each. This comprises 3.07% of the total paid-up equity capital at Rs 350 per share.
Speaking of buybacks, investors should not assume buybacks are always good. Here's an excerpt of what Rahul Shah, co-head of Research, wrote in an edition of The 5 Minute Wrapup:
The topic also brings us to ask: Do buy-backs offer an arbitrage opportunity for retail investors? Ankit Shah has answered this question in one of the editions of Equitymaster Insider. You can access the issue here (requires subscription).
