Infosys Sparks IT Revival: Promoters Skip Buyback, FII Money Returns, Volumes Surge
The rally was triggered after Infosys promoters, including Narayana Murthy, chose not to participate in the Rs 18,000-crore share buyback.
Infosys lit up trade on Thursday, emerging as the torchbearer of the IT rebound. The stock rallied sharply with trading volumes nearly three times the 20-day average, according to Bloomberg, as a mix of structural and sentimental cues spiked investor interest in India’s second-largest IT services company.
Promoters Sit Out Signalling Confidence
The rally was triggered after Infosys promoters, including Narayana Murthy, chose not to participate in the Rs 18,000-crore share buyback. The move is being interpreted as a signal of confidence in the company’s future earnings visibility.
It also means non-promoter shareholders stand to gain from a higher acceptance ratio, while promoters retain voting rights and stake consistency, maintaining long-term control.
Macro Tailwinds & Valuation Comfort
Beyond company-specific triggers, the broader setup is turning favourable. A potential US tariff rollback could ease client-side cost pressures and revive offshore outsourcing demand.
IT sector valuations, meanwhile, are at five-year lows, prompting a catch-up rally as global funds rotate from over-owned private banks to under-owned IT names.
Quarterly Beat & Guidance Lift
Infosys’ Q2FY26 performance added fuel to the optimism. The company beat Street estimates with constant currency revenue growth of 2.2% on a sequential basis, slightly below Q1’s 2.6% but backed by strong vertical momentum. The lower end of FY26 guidance was raised to 2–3%, signaling steady demand recovery.
Cycle Bottoming Out
The latest H1FY26 hiring stability report adds another layer of optimism, indicating that the IT downcycle may be nearing its end. Combined with Infosys’ promoter stance and improved guidance, investors appear to be betting that the worst is over.
Infosys, trading at its most attractive valuations in half a decade, is now not just a stock in rally mode, it’s fast becoming the bellwether for an IT sector comeback.
Shares of Infosys on Thursday touched an intraday high of Rs 1,546 apiece, up nearly 5% as against the last closing price. At 3:09 pm, the scrip was trading 3.93% higher at Rs 1,530.2, as against a 0.065% rise in the benchmark Nifty 50.
