IT Stocks Soar, Infosys Leads Gains, Promoters Skip ₹18,000-Crore Buyback

Mumbai: Indian IT stocks saw strong gains today, led by optimism over a potential India-US trade deal and favorable valuations. Infosys surged nearly 4 percent, while HCL Tech, Tech Mahindra, and TCS also posted solid rises. Midcap IT firms like MPhasis, Persistent, and Coforge contributed to the rally, reflecting broad-based buying interest in the sector.

Trade Deal Boosts Market Sentiment

The positive momentum comes amid news that India and the US are close to finalizing a trade agreement, which is expected to lower American tariffs on Indian imports from 50 percent to around 15 percent-16 percent. US President Donald Trump confirmed discussions with Prime Minister Narendra Modi focusing heavily on trade and energy. The trade deal is seen as a major catalyst for Indian exporters, particularly IT companies, boosting investor confidence.

Infosys Promoters Show Confidence

Infosys grabbed special attention after announcing that its promoters, including founders N.R. Narayana Murthy, Sudha Murty, and Nandan Nilekani, will not participate in the company’s Rs 18,000-crore share buyback program. This decision signals the promoters’ strong belief in the company’s long-term growth and financial health. By not selling their shares, the promoters show faith in Infosys’ future prospects, which reassures investors.

What This Means for Investors

The promoters’ non-participation means their ownership stake will slightly increase once the buyback reduces the total shares outstanding. This move is generally interpreted as a positive sign, as promoters usually hold on to shares when confident about the company’s valuation and growth. Combined with the expected benefits from the trade deal, the IT sector looks well-positioned for continued gains.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Please consult a certified financial advisor before making any investment decisions. Market conditions can change rapidly.