Nifty IT Index Jumps 2%, Snaps Five-Day Losing Streak; Infosys, Wipro Lead Gains

Indian equity markets witnessed strong action in the technology pack on September 9, 2025, as the Nifty IT index surged over 2%, ending a five-day losing streak.

At 10:50 am, the index was trading at 35,093 points, making it the top sectoral gainer on the market.

Shares of Infosys, Wipro, Tech Mahindra, TCS, HCL Tech, Mphasis, Coforge, Persistent Systems, and LTI Mindtree all traded in the green, signaling a sharp rebound in sentiment.

Infosys and Wipro Drive the Rally

• Infosys shares jumped more than 4% to ₹1,495 apiece, topping the index.

• Wipro shares rose nearly 3% to ₹249 apiece.

• Tech Mahindra and Coforge gained almost 2% each, while Mphasis, HCL Tech, Persistent Systems, and TCS advanced over 1%.

• LTI Mindtree was also up close to 1%.

The strong move in Infosys provided the biggest boost to the Nifty IT index, helping it outperform all other sectoral indices.

Also Read: Prosus: IPOs Are Milestones, Not Exits

Reason 1: Hopes of a US Fed Rate Cut

One of the biggest global triggers for IT stocks is the expectation that the US Federal Reserve may opt for a 50-basis-point rate cut in its upcoming FOMC meeting (Sept 16–17).

The anticipation comes after weak US jobs data and growing political pressure on the Fed to support economic growth.

• Why it matters: Indian IT companies earn a large share of their revenues from the US market.

• Impact: A rate cut would boost discretionary spending by US clients, improving demand for IT services.

A Standard Chartered note even doubled its earlier forecast, saying:

“August labor market data has paved the way for a ‘catch-up’ 50-basis point rate cut at the September FOMC meeting, similar to last year.”

This global tailwind has lifted IT sentiment in India, with investors expecting stronger order flows in the quarters ahead.

Reason 2: Infosys Board to Consider Share Buyback

Another big driver was Infosys’ announcement on September 8 that its board will meet on September 11 to consider a share buyback proposal.

• If approved, this would be Infosys’ first buyback since 2022, when the company announced a ₹9,300 crore program with a minimum buyback price of ₹1,850 per share.

• The news pushed Infosys stock up more than 4%, making it the top gainer on the Nifty IT, Nifty 50, and Sensex.

The buyback buzz not only fueled Infosys shares but also boosted broader IT sentiment, as buybacks are often seen as a sign of management confidence and strong cash reserves.

Reason 3: Value Buying After Heavy Correction

The Nifty IT index had fallen nearly 4% in the past five sessions, pressured by tariff worries, global uncertainties, and weak investor sentiment.

With valuations corrected, investors looked to accumulate IT stocks at attractive levels, triggering a sharp rebound.

Market expert Siddharth Maurya, Founder & MD, Vibhavangal Anukulakara Pvt. Ltd., explained:

“The IT stocks’ rise today, especially with Infosys’ buyback offer, highlights the speed at which sentiment can shift to positive when there are global and local triggers. The dual tailwinds from GST rationalization and anticipation of a U.S. Fed rate reduction are acting as long-needed support to Indian equities.”

He further added that while the IT industry has faced headwinds this year, structural growth drivers remain intact.

Broader Market Impact

The sharp IT rally provided strong support to the overall market. Both Sensex and Nifty saw gains, with Infosys’ performance alone contributing significantly.

The IT index’s recovery comes at a crucial time when global uncertainties had been weighing on investor confidence. Analysts believe that if the US Fed delivers a rate cut, Indian IT could see sustained buying momentum in the near term.

Key Highlights

• Nifty IT index up 2% to 35,093, breaking a 5-day losing streak.

• Infosys up 4%, Wipro 3%, Tech Mahindra & Coforge 2% each.

• Infosys buyback proposal to be considered on Sept 11.

• US Fed rate cut hopes spark optimism for IT demand.

• Value buying after the recent 4% correction supports the rally.

Outlook: What’s Next for IT Stocks?

• If the US Fed confirms a 50-basis-point cut, IT demand outlook could brighten, driving further gains.

• The Infosys buyback decision will be closely watched — if approved, it may fuel another leg of rally in Infosys and peer stocks.

• While tariff concerns and global uncertainties remain, analysts see IT as a structural growth sector in India’s economy.

In the short term, volatility may persist, but the long-term growth story of Indian IT services remains intact.

Conclusion

The Nifty IT index’s 2% surge on September 9 marks a strong comeback for the sector after days of weakness.

With global triggers like a potential US Fed rate cut, a domestic boost from Infosys’ buyback, and value buying by investors, IT stocks found solid ground.

While near-term uncertainties continue, the rally reinforces investor confidence that Indian IT remains central to market momentum and long-term growth.

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