Sun Pharma board to consider buyback of shares next week

Analyst say more promoters likely to seek ways to cushion share price

The pharma major Sun Pharmaceutical Industries on Thursday announced that its board will consider the buyback of company's shares next week.

According to analysts, more promoters could announce buybacks to reinforce confidence among shareholders and protect their market caps during the panic selling that is being seen in the markets.

"We are seeing unprecedented carnage in markets. Promoters would now look at ways in which further erosion of shareholder wealth can be prevented. We could see more companies announce dividends, buybacks, to keep shareholders' confidence intact," said G Chokkalingam, managing director, Equinomics Research and Advisory Services.

According to analysts, promoters