The tech stocks lit up Dalal Street today. The Nifty IT index jumped over 2% as all its 10 constituents traded in the green in the intraday trading session today. This surge in the tech stock sector came from Infosys share buyback news, backed by currency moves and a shift in investor sentiment.
Let’s take a look at the major factors behind the rally in today’s trading session.
Stocks leading the rally
The buying spree was broad-based. Infosys surged nearly 4%, emerging as the top gainer. Wipro followed, rising close to 3%. Tech Mahindra, LTIMindtree, HCL Tech, Coforge added around 2-3%. TCS, Persistent Systems, Mphasis and Oracle Financial climbed between 1-2%.
Infosys buyback
Infosys stole the spotlight after announcing that its board will meet on September 11 to consider a share buyback. The share price of the IT behemoth surged over 2% in the intraday trading session today.
In the regulatory filing, “The Board of Directors of Infosys Limited will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on September 11, 2025, in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended.”
If approved, this will be the company’s first buyback in three years. The announcement also lifted mood across the entire IT basket.
Rupee depreciation works in favour
Another reason behind today’s rally is the rupee depreciation. The rupee recently slid below 88 against the US dollar, hitting a record low of 88.36.
For IT companies, which earn most of their revenues in dollars, this translates into stronger margins when converted back to rupees.
US tariff risk looms, but ignored for now
There is, however, a cloud on the horizon. A fresh US proposal, that is, the HIRE Act aims to impose a 25% tax on outsourcing payments. If implemented, it could directly hit Indian IT exporters, who earn more than 60% of their revenue from the US. Despite this risk, markets chose to focus on the immediate positives, leaving the tariff concerns on the sidelines for now.
It is important to note that IT stocks have had a tough year so far. The Nifty IT index has slipped almost 19% year-to-date, while the broader Nifty 50 has gained about 5%.