Shares of India’s major IT firms, including Infosys, HCLTech, and TCS, saw notable gains on Thursday as investors reacted to a mix of strong corporate news, sectoral momentum, and broader market optimism.
Infosys led the pack, rising nearly 5% to Rs 1,541.50 on the BSE following the announcement of its largest-ever Rs 18,000 crore share buyback programme.
The company’s promoters, including cofounders NR Narayan Murthy, Nandan Nilekani, and Sudha Murty, have chosen not to participate in the buyback, increasing potential public participation and boosting market sentiment.
HCLTech and TCS also gained as investors positioned themselves ahead of strong Q2 earnings expectations and optimism surrounding a possible India–US trade deal, which could see tariffs on Indian IT exports to the US reduced to 15–16%.
Analysts say such a move would be a significant margin booster for IT firms with large US exposure.
Gaurav Sharma, Associate VP and Head of Research at Globe Capital, told Business Today that the IT sector has faced a challenging year due to tariff uncertainty, and as India moves closer to a potential trade deal with the US, IT stocks are seeing renewed buying.
He added that Infosys’ buyback, coupled with positive earnings expectations, is driving sectoral gains.
Technical indicators point to sustained momentum, with Nifty IT stocks trading near the upper Bollinger Band, suggesting the bullish trend may continue in the short term.
Short-covering in large-cap IT stocks has further fuelled the rise, while foreign institutional investors (FIIs) have turned net buyers, supporting sectoral strength.
Experts believe the rally in IT stocks could continue if the India–US trade deal materialises and quarterly earnings exceed expectations. At the same time, caution is advised as valuations are elevated and any delay in trade negotiations or global tech headwinds could trigger profit booking.
For now, the IT sector remains in focus as investors watch how trade developments and buyback announcements influence the market in the coming days.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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Published By:
Koustav Das
Published On:
Oct 23, 2025
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