HCL Technologies stock reclaims Rs 1,000-mark, up 4% as board to consider share buyback

HCL Technologies scrip price rallied as much as 4 percent to reclaim Rs 1,000-mark in morning ahead of its board meeting to consider share buyback later this week.

"A meeting of the board of directors of the company is scheduled to be held on July 12 to consider a proposal for buy-back of the equity shares of the company," the IT services company said in its filing on Monday.

While having Overweight call on the stock with a target price of Rs 1,060, Morgan Stanley said buyback should be in-line with its policy to return 50 percent of income to shareholders.

Last month, its peers Tata Consultancy Services also announced a mega Rs 16,000 crore share buyback while Infosys�completed its Rs 13,000-crore share buyback last year.

Buyback is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price. When it buys back, the number of shares outstanding in the market reduces.

At 10:20 hours IST, the stock price was quoting at Rs 981.65, up Rs 20.40, or 2.12 percent on the BSE. First Published on Jul 10, 2018 10:28 am