Indian IT stocks are rallying strongly for the second straight session, led by optimism around Infosys’ share buyback plan. The Nifty IT index gained 3% in intra-day trade on Wednesday, extending its two-day rally to 6%. This rebound comes after a prolonged period of underperformance due to weak global demand and cautious client spending.
Infosys has been at the centre of the rally after announcing its board will meet on September 11 to consider a buyback proposal. If approved, it will be the first since 2022, when the company launched a ₹9,300 crore buyback at a minimum price of ₹1,850 per share.
The stock had earlier touched a 52-week low of ₹1,307 on April 7, 2025, after a sharp correction from its December 2024 high of ₹2,006. While the new buyback’s size and pricing are yet to be revealed. Buybacks generally aid sentiment, though investor focus will remain on revenue growth and margin guidance.
At 12:01 PM on Wednesday, the Nifty IT index was up 2.6%, far ahead of the Nifty 50’s 0.43% rise. Several mid- and large-cap IT names surged between 5% and 10% in intra-day trade, including Oracle Financial Services Software, Zensar Technologies, Cigniti Technologies, Persistent Systems, Tata Elxsi, Coforge, Cyient, Intellect Design Arena, and Mphasis.
Infosys, Tata Consultancy Services, HCL Technologies, Wipro, LTIMindtree, Tech Mahindra, and L&T Technology Services also posted gains of 2–4%.
The Nifty IT index has lagged broader markets over the past three to six months amid macro uncertainties and muted client spending. However, it has staged a recovery in the last month, outperforming as expectations of US Federal Reserve rate cuts and a weak rupee improved investor sentiment. Despite this rebound, challenges persist. Data indicates hiring in the IT-Software/Software services sector fell 6% year-on-year and 15.6% month-on-month, with declines in six of the last eight months.
This reflects ongoing pressure on demand and growth momentum. Infosys shares gained 2% in intra-day trading on Wednesday and have risen 7% over the past two sessions. The stock remains 23% below its 52-week high, highlighting scope for recovery if buyback support combines with improved demand visibility.
Read More: Tech stocks slump: TCS, HCL Tech, Wipro drop up to 15% in July, drive Nifty IT down nearly 10%
The Infosys buyback news has provided a much-needed lift to the Nifty IT index, which has struggled for much of 2025. While near-term sentiment has improved, the sector’s outlook will depend on global macroeconomic conditions, client spending trends, and the pace of recovery in hiring and growth momentum.
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Published on: Sep 10, 2025, 12:57 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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