Thu Oct 23 11:50:00 UTC 2025: Summary:

Indian IT giants like Infosys, HCLTech, and TCS experienced a significant surge in their stock prices on Thursday. Infosys led the charge with a nearly 5% increase fueled by its announcement of a massive Rs 18,000 crore share buyback program, notably excluding participation from its promoters. Optimism surrounding a potential India-US trade deal, which could reduce tariffs on Indian IT exports, further boosted investor confidence. Analysts attribute the rally to this trade deal optimism, Infosys’ buyback program, and expectations of strong Q2 earnings. Technical indicators suggest continued bullish momentum, although experts advise caution due to elevated valuations and potential setbacks in trade negotiations or global tech headwinds.

News Article:

Indian IT Stocks Surge on Buyback, Trade Deal Hopes

Mumbai – Indian IT giants saw their share prices skyrocket on Thursday as investors responded to a potent mix of corporate news and macroeconomic optimism. Infosys led the charge, jumping nearly 5% after announcing a massive Rs 18,000 crore share buyback. Notably, company promoters, including co-founders NR Narayan Murthy and Nandan Nilekani, are opting out of the buyback, potentially increasing participation from public shareholders.

HCLTech and TCS also benefited from the positive sentiment, fueled by anticipation of strong Q2 earnings and growing hopes for a favorable India-US trade agreement. The potential deal could slash tariffs on Indian IT exports to the US to as low as 15-16%, significantly boosting profit margins for companies with substantial US operations.

“The IT sector has been facing challenges due to tariff uncertainty, but as India gets closer to a potential trade deal with the US, IT stocks are seeing renewed buying,” explained Gaurav Sharma, Associate VP and Head of Research at Globe Capital. “Infosys’ buyback, coupled with positive earnings expectations, is further driving sectoral gains.”

Technical indicators suggest the bullish trend could continue, but analysts warn investors to remain cautious. Elevated valuations and potential delays in trade negotiations, or unexpected global tech headwinds, could trigger profit booking. While the sector is currently riding a wave of positive momentum, experts advise consulting a financial advisor before making any investment decisions. The coming weeks will be crucial as investors closely monitor trade deal developments and await quarterly earnings reports.

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