On Wipro buyback, Zee Biz hits bull's eye; Anil Singhvi says size small in terms of amount
Detailing about the Wipro’s announcement on buyback at Rs 400 / share, he said the price is what Zee Business had informed to its viewers, but he was a bit disappointed with the buyback size of Rs 9,500 crore.
Zee Business Managing Editor Anil Singhvi on Wednesday talked about Wipro buyback announcement, its price, size and how Zee Business prediction of price hit the bull's eye, exactly like with TCS buyback. He also revealed how investors would respond to this announcement.
Detailing about the Wipro’s announcement on buyback at Rs 400 / share, he said the price is what Zee Business had informed to its viewers, but he was a bit disappointed with the buyback size of Rs 9,500 crore. He said there was strong view in the market that Wipro will announce a buyback of Rs 415 to 420 and they must be disappointed. However, Zee Business prediction of Rs 390 to 400 turned out true.
Result is good as expected, revenue guidance of 1.5% is strong but the buyback amount is a bit less, underlined Zee Business Managing Editor.
“I was expecting Wipro should have announced a buy back to the tune of Rs10,500 to 11,500. It is a small amount in terms of size. When amount is less, your expectance ratio also goes down,” the Market Guru said.
Find out detailed analysis below:
विप्रो ₹400/शेयर पर करेगी बायबैक...
TCS के बाद विप्रो पर भी ज़ी बिजनेस की एक्सक्लूसिव रिसर्च निकली पक्की...
— Zee Business (@ZeeBusiness) October 14, 2020
He said if the market opens strongly, the stock might see profit booking. He suggested that the investors should temporarily exit and book profit if the stock shows the range of Rs 375 to 400, as there is not much trigger left in the stock.
Talking about IT stocks in general, he said the market will respond according to news about the result, buyback and other similar news. After Wipro, similar phenomenon will be seen in other IT stocks, he said, advising investors to switch in the same sector accordingly.
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Meanwhile, Wipro Ltd stock opened on Rs 365 and went on to hit bottom of Rs 348.30 and was trading in the same range on NSE while the report was filed. Upper circuit for the stock was Rs 413 and lower circuit was set at Rs 338 for the day.
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