Infosys leads Sensex rally, shares rise 4%; here's what is fuelling demand

The Infosys board has approved a buyback of 100 million fully paid-up equity shares with a face value of ₹5 each, at a price of ₹1,800 per share, amounting to ₹18,000 crore

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Infosys Share Price: Shares of Infosys, the country’s second-largest IT services provider, surged on Thursday, October 23, as markets reopened following the Diwali holidays. The Bengaluru-based company’s stock climbed 3.76 per cent to hit an intraday high of ₹1,527.35 per share on the BSE, emerging as the top gainer among Sensex constituents. 

At 9:52 AM, Infosys shares were trading at ₹1,523, up 3.46 per cent from the previous close of ₹1,472 on the BSE. A combined volume of nearly 5.67 million equity shares, worth approximately ₹880.83 crore, changed hands on the BSE and NSE. At the same time, The BSE Sensex was trading with gains of 720 points or 0.85 per cent at 85,146  levels.

Why were Infosys shares in high demand?

The upward movement in Infosys’ share price followed news that the company’s promoters, including Narayana Murthy and chairman Nandan Nilekani, have decided not to participate in the share buyback announced in September.

 

The Infosys board had approved a buyback of 100 million fully paid-up equity shares with a face value of ₹5 each, at a price of ₹1,800 per share, amounting to ₹18,000 crore. This buyback represents up to 2.41 per cent of the total paid-up equity capital on a standalone basis. The buyback will be executed from equity shareholders on a record date yet to be announced, according to the company’s exchange filing.

 

“Since the promoters and promoter group of the company have declared their intention not to participate in the buyback, equity shares held by them have not been considered for the purposes of computing the entitlement ratio,” the company stated in a regulatory filing.

 

This marks Infosys’ fifth buyback in the last decade. The previous buyback occurred in 2022 through an open market purchase, where the company bought back 60 million shares for ₹9,300 crore at an average price of ₹1,850 per share.

Infosys Q2FY26 results

During the Q2FY26, the IT giant reported a 13.2 per cent year-on-year (Y-o-Y) increase in net profit to ₹7,364 crore, driven by a strong pipeline of large deals and broad-based growth across verticals.

 

Revenue during the quarter rose 8.6 per cent Y-o-Y to ₹44,490 crore, led by the financial services and manufacturing sectors. The total contract value of large deals signed in Q2 stood at $3.1 billion, up 29 per cent Y-o-Y. While financial services and manufacturing grew 5.4 per cent and 6.6 per cent respectively, the retail vertical saw a 2.3 per cent decline.

Infosys dividend announcement

Additionally, Infosys declared an interim dividend of ₹23 per equity share. The company has set October 27, 2025, as the record date and November 7, 2025, as the dividend payout date.