India: Does a buyback flurry point to bottoming of markets?

India: Does a buyback flurry point to bottoming of markets?

A man looks up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange (BSE) in Mumbai, India, on Friday, Jan. 27, 2017. Photographer: Dhiraj Singh/Bloomberg

With the Nifty 500 index falling by nearly 30% in the past two months, an oft-asked question in investors’ minds is whether the markets have bottomed out. There appears to be some support for this theory, going by an increase in the number of buyback announcements by companies, as well as share purchases by promoters in their companies.