The rally was triggered after Infosys promoters, including Narayana Murthy, chose not to participate in the Rs 18,000-crore share buyback. The move is being interpreted as a signal of confidence in the company’s future earnings visibility.

It also means non-promoter shareholders stand to gain from a higher acceptance ratio, while promoters retain voting rights and stake consistency, maintaining long-term control.

Beyond company-specific triggers, the broader setup is turning favourable. A potential US tariff rollback could ease client-side cost pressures and revive offshore outsourcing demand.

IT sector valuations, meanwhile, are at five-year lows, prompting a catch-up rally as global funds rotate from over-owned private banks to under-owned IT names.

The latest H1FY26 hiring stability report adds another layer of optimism, indicating that the IT downcycle may be nearing its end. Combined with Infosys’ promoter stance and improved guidance, investors appear to be betting that the worst is over.

Infosys, trading at its most attractive valuations in half a decade, is now not just a stock in rally mode, it’s fast becoming the bellwether for an IT sector comeback.

Shares of Infosys on Thursday touched an intraday high of Rs 1,546 apiece, up nearly 5% as against the last closing price. At 3:09 pm, the scrip was trading 3.93% higher at Rs 1,530.2, as against a 0.065% rise in the benchmark Nifty 50.