Infosys shares rise nearly 6% in two days ahead of board meeting to consider share buyback; check details

Infosys shares saw strong traction for the second consecutive day as the stock rose over 2% intraday, with a day high of ₹1,534.9 apiece on NSE. Shares of the IT service provider closed 4.98% higher in yesterday’s trading session.

The stock rise comes ahead of the company’s board meeting on September 11 to consider a share buyback proposal. If approved, this will be Infosys’ fifth share buyback. The IT major's last share buyback took place in 2022, when the company spent ₹9,300 crore to buy shares with a maximum buyback price of ₹1,850 per share.

Since 2017, Infosys has announced four share buybacks for its shareholders. In 2017, the buyback was valued at ₹13,000 crore. The company announced its second buyback in 2019 when it repurchased shares worth ₹8,260 crore. The next share buyback came in 2021, worth ₹9,200 crore, with a maximum price of ₹1,750 per share, followed by the most recent buyback in 2022.

Despite the stock rise in the last two days, Infosys shares are down over 18% year-to-date. Infosys and other IT stocks have underperformed in 2025 amid multiple headwinds.

• Weak IT spending: Global outsourcing companies in key markets like the US and Europe are cutting back on IT spending amid economic uncertainty, recessionary fears, and high inflation. This has led to fewer new order wins for the domestic IT companies, impacting their revenue and profit visibility.
• US tariff uncertainty: The slowdown in new IT deal wins is also due to uncertainty around the US trade tariff concerns. At the start of 2025, the IT sectors were growth-led policies from the US government, especially after President Donald Trump took over. However, a series of tariff-related announcements soon weakened the investor sentiment.

As a result, shares of Infosys and other IT stocks soon took a hit, falling in the range of 20% to 30% so far in 2025.