Amidst the bustling chaos of the Indian stock markets, a captivating financial phenomenon is taking centre-stage – buybacks! These strategic manoeuvres, once the exclusive domain of the technology-savvy IT companies, have now caught the keen eye of a new contender – the manufacturing giants. With this enticing twist in the financial tale, the question on everyone’s lips is: Will the manufacturing sector be the next to dance to the buyback rhythm, leaving investors spellbound with newfound shareholder rewards?
Step into the dazzling world of buybacks as we unravel their allure and explore why manufacturing companies are eager to join the show! In recent times, buybacks have emerged as a prominent capital allocation strategy employed by companies in the Indian stock markets. While information technology (IT) companies have been at the forefront of this trend, manufacturing companies are increasingly considering buybacks as an attractive option. In July, India’s manufacturing sector experienced further expansion compared to the previous month, as indicated by the S and P Global Purchasing Managers’ Index (PMI) data released on August 1, 2023.
The PMI slightly decreased to 57.7, down from its June value of 57.8. However, it is important to note that the manufacturing PMI has remained above the critical threshold of 50 for 25 consecutive months, signifying sustained expansion in the sector. The Indian manufacturing sector demonstrated resilience, maintaining its growth momentum as production lines continued to operate robustly, supported by a notable surge in new orders. Remarkably, the Indian manufacturing sector stands out as a top performer on the global stage, defying the prevalent demand weakness observed in other regions around the world. So what does this mean for buybacks? Before delving into this, let’s explore buybacks.
This story is from the August 14, 2023 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 14, 2023 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
