Sensex off day’s high, Nifty still holds 8900 on Reliance rally

1:50 PM HCL Tech buyback? After Tata Consultancy Services’ humongous Rs 16,000-crore share buyback, it could now be the turn of its only large rival from the north — the Noida-headquartered HCL Technologies — to undertake a similar exercise.

An official familiar with the development told Moneycontrol the company was open to the idea of a share buyback and was considering it. “We keep looking at options to increase shareholder value. We are open to a share buyback. We will go to the Board once we have decided on it,” the official said.

HCL Technologies shareholders will have to approve the buyback proposal once it has gone through the Board.

1:28 PM Buzzing stocks: Shares of IT majors Tata Consultancy Services (TCS) and Infosys fell around 2 percent intraday on Wednesday on buzz of a US-based retail giant’s plans to cut outsourcing contracts to Indian firms.

According to a report in Mint, JC Penney plans to reduce its outsourcing projects to companies such as TCS and Infosys. The retail firm is said to be giving business worth billions to Indian IT companies.

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Equity benchmarks shed morning gains as investors may have looked to book profits. The Nifty is holding on to its 8900-mark.

The Sensex was up 62 points at 28824, while the Nifty was up 6 points at 8914.

About 1,091 shares had advanced, 1,537 shares declined, and 186 shares had remained unchanged.

Reliance continued to be the top positive contributor on the Nifty.

Meanwhile, Coal India and Reliance were the top gainers on the Sensex and Nifty, with gains of around 2 percent and 9 percent, respectively. IT stocks Infosys and TCS were a drag on the index as they fell around 2 percent.