The Street is abuzz with speculation that information technology (IT) major Infosys could be planning a buyback. According to market players, the underperformance of the company vis-a-vis the benchmark indices, could force this decision. “A buyback will give a boost to share prices, reduce cash on books and improve return of equity — all three are positive factors for the company’s fortunes,” said an analyst. There is speculation that once Infosys bites the buyback bullet, other IT companies may also take the same route. Tata Consultancy Services (TCS), though, is expected to take the dividend route. In the past one year, Infosys is down 19.3 per cent whereas the Sensex is up 16.6 per cent. Wipro and TCS are down 17.9 per cent and 7.6 per cent, respectively.
Joydeep Ghosh
Brokers plan to write to FinMin on STT move
Shocked by the Budget proposal to levy 10 per cent tax on long-term capital gains on shares acquired by not paying Securities Transaction Tax (STT), the broking community plans to write to the finance ministry, seeking clarity and relaxations. Sources said key leaders of the broking community and a senior stock exchange official on Friday discussed the issue. Brokers want the ministry to consider their views before it issues final guidelines, the source added.
Shrimi Choudhary
JSPL interest repayment sparks optimism
Debt fund managers are breathing easy after Jindal Steel & Power Ltd (JSPL) has made an interest payment to bond holders, which has led to a sigh of relief for investors. After rating agencies downgraded the steelmaker last year, fund houses were jittery and some of them had trimmed their exposure to JSPL’s debentures. However, this development was taken positively by equity investors, with shares of the company climbing more than 10 per cent last week. But, fund managers continue to be cautious with their debt exposure, particularly towards companies with weak financials.
Pavan Burugula
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