Hopes of an introduction of buy-back had pushed up the stocks of those companies which had already taken shareholders approval to go in for buy-back. ``The market was eagerly awaiting announcement for buyback but it has turned out to be a big disappointment. Buyback candidates were the worst hit in the post-budget session,'' said dealers in Mumbai.

Most of these stocks had rallied in the pre-budget session on hopes of some announcement on the buy-back front. But a dissapointment in the budget led to a sharp slide in the stocks which closed the post-budget session well below the previous closing levels.

Reliance Industries' notice to the stock exchange informing that the company proposesto buy-back 5 per cent of its equity further helped fuel the rally in the pre-budget session. Reliance closed at Rs 175.10 up Rs 8.1 from the previous close of Rs 167. But the stock took a severe beating in the post-budget session to Rs 166, down to its Friday's close.

Bajaj Auto zoomed by Rs 23.75 to close the pre-budget rally at Rs 659.75, but dropped by more than Rs 33 to around Rs 606. Videocon International's scrip, which has been very volatile in the past few sessions zoomed by over Rs 13 to close the pre-budget session at Rs 175.6. The stock, however, lost almost Rs 10 to close the day at Rs 166. In fact, the market had anticipated the announcement on buyback in order to give an impetus to market heavyweights which are lying way below their book values. This would have meant a lower equity and a corresponding higher EPS, thereby turning valuations attractive. Buyback would have empowered companies to buyback their own shares from the market.

Once a company would have bought back its shares, it hadthe option to either extinguish the said shares and reduce the share capital or reissue the shares after expiry of 24 months.