The Infosys scrip gained nearly 5 per cent today following the company's announcement that its board will on Saturday consider a proposal for buyback of equity shares.
The stock jumped 4.54 per cent to settle at Rs 1,021.15 on BSE. During the day, it had soared 5.33 per cent to Rs 1,028.90.
On NSE, it surged 4.68 per cent to end at Rs 1,020.85.
The stock was the biggest gainer on both the key indices.
The company's market valuation also zoomed Rs 10,189.78 crore to Rs 2,34,554.78 crore.
In volume terms, 5.32 lakh Infosys shares were traded on BSE and over one crore shares changed hands on the NSE.
"The opportunity from recent correction and the announcement of share buyback from IT major supported the sentiment," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
Infosys informed BSE that the board of directors of the company will consider a proposal for buyback of equity shares at its meeting to be held on August 19, 2017.
It added that the outcome of the board meeting will be disseminated to the stock exchanges after the conclusion of the meeting.
Infosys, in April, had said that it will pay up to Rs 13,000 crore to shareholders during the current financial year through dividend and/or share buyback.
Share buybacks typically improve earnings per share and is a mechanism to return surplus cash to shareholders while also supporting share price during period of sluggish market condition.
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