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Shares of IT companies rallied sharply on Sept 9, propelling the Nifty IT index more than 2.5% higher and ending a five-day losing streak
Why are IT stocks rising today?
IT Shares Rise: Shares of IT companies rallied sharply on September 9, propelling the Nifty IT index more than 2.5% higher and ending a five-day losing streak. By 12:30 pm, the index was trading at around 35,197, making it the top-performing sectoral index of the day.
Infosys was the star performer, climbing nearly 5% to Rs 1,499.90 per share. Wipro, Mphasis, and Coforge advanced close to 3% each, while Tech Mahindra, HCL Tech, LTI Mindtree, and Persistent Systems rose around 2% apiece. Tata Consultancy Services (TCS) also added over 1%.
What Triggered the Rally in IT Stocks?
1. US Fed Rate Cut Expectations
The US Federal Reserve’s upcoming FOMC meeting on September 16–17 has fueled investor optimism. Weakening labor market data and pressure from the Trump administration have strengthened the case for a rate cut.
Analysts at Standard Chartered now expect a 50-basis point reduction, double their earlier projection. A Fed rate cut is seen as a positive for Indian IT firms, as higher discretionary spending in the US—their largest revenue market—can translate into stronger demand for outsourcing and digital services.
2. Infosys Buyback Proposal
Infosys shares surged more than 4% after the company announced that its board will meet on September 11 to consider a buyback of fully paid-up equity shares. If approved, this would mark Infosys’ first buyback since 2022, when it launched a Rs 9,300 crore program at a minimum buyback price of Rs 1,850 per share.
The announcement, made after market hours on September 8, lifted investor sentiment and made Infosys the top gainer not only in the Nifty IT index but also in benchmark indices Sensex and Nifty. Its sharp rally was the single biggest driver behind the IT index’s gains.
3. Value Buying After Correction
The IT sector has faced heavy selling pressure in recent days amid global uncertainties and tariff-related worries. The Nifty IT index had dropped nearly 4% in five consecutive sessions. Tuesday’s rebound suggests investors engaged in value buying after the correction, particularly with the added boost from Infosys’ buyback announcement.
Market experts, however, remain divided. Siddharth Maurya, Founder & MD, Vibhavangal Anukulakara Pvt. Ltd., said the rally shows how quickly sentiment can turn positive when both global and local triggers align, citing GST rationalization and Fed expectations as dual tailwinds.
Bhavik Joshi, Business Head, INVasset PMS, urged caution, noting that foreign investors remain hesitant and a lack of earnings acceleration could cap gains. He added that while Infosys’ buyback may offer a short-term lift, the sector’s fortunes remain tied to global tech spending and deal flows.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 09, 2025, 14:18 IST
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