Equity buybacks are quite common at a time when prices are low and currently the stock prices are awfully low after the 35% correction from the peak. Sun Pharma announced buy back plans worth Rrs.1700 crore while Emami said it plans to buy back its shares worth Rs.194 crore. In the last few days, other companies that have corrected sharply like Sterlite Technologies, Kalpataru Power Transmission and Motilal Oswal Financial Services have also indicated that their boards were likely to consider share buybacks. The reasons are not far to seek. The sudden rush to buy back shares comes after the benchmark Sensex has shed 35% from its February peak. Obviously, it looks like promoters and companies want to use these buybacks to signal to the market that the stocks are undervalued at these prices. Such moves will also give confidence and the new dividend tax will also work in favour of the buyback announcement.