Does Share Buyback Increase Equity Share Price?

The paper is focused on “does share buyback increase share price?” There has been an increasing uptrend of share buyback in the Indian capital markets much to the similar phenomenon in the United States. It is usually undertaken by a company to send positive signals to the market about the stock with an aim to push the current price to its intrinsic value when it is felt undervalued in the market. The present study is conducted with a sample of 26 companies with certain and appropriate statistical tools, it is found that share buyback doesn't result in the increase of the share price in the market place but there gives an opportunity for speculation.