IT stocks rallied up to 3% on Thursday following reports that India and the US are nearing a trade agreement. The Nifty IT index surged as much as 2.4%, with all its constituents trading in the green.
Infosys led the gains in the Nifty IT index, rising over 4%. Other major gainers included HCL TechnologiesMphasis, Tech Mahindra, and Persistent Systemseach advancing over 2%. Shares of Coforge, WiproTata Consultancy Services (TCS), and LTI Mindtree also gained over 1% each.
The uptrend in IT stocks boosted overall sentiment in the Indian stock market today, with the benchmark Sensex climbing more than 700 points and the Nifty 50 breaching the 26,000 mark for the first time since September 30, 2024.
India-US Trade Deal
According to a report by Mint, India and the US are likely to finalize a trade deal soon that could reduce tariffs on Indian exports to 15–16% from the current 50%. Energy and agriculture have reportedly emerged as key areas of negotiation, with India expected to agree to gradually reduce its imports of Russian crude oil, the report added, citing people familiar with the matter.
Infosys Share Buyback Update
Infosys share price was the top performer among IT stocks, driven by updates related to its ₹18,000 crore share buyback programme — the largest in the company’s history.
The IT major said that its promoters and promoter group, including co-founders Narayana Murthy, Nandan Nilekani, and Sudha Murthy, have opted not to participate in the buyback. Infosys share price surged up to 4.28% to ₹1,535.10 apiece on the BSE following the announcement.
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