Infosys Extends Gains After Buyback Proposal; SEBI Analysts See Short-Term Strength But Eye Medium-Term Risks

Infosys shares extended gains on Wednesday after rallying nearly 5% in the previous session when the company confirmed its board will meet on Sept. 11 to consider a share buyback proposal. 

The announcement has triggered optimism across the sector, with Wipro and Tata Consultancy Services also seeing a surge in sentiment-driven buying.

Buyback Optimism Lifts IT Pack

SEBI-registered analyst Pradeep Carpenter noted that the buyback would mark Infosys’ fifth equity repurchase in its history, a move that could improve return ratios and boost earnings per share by reducing equity. 

Carpenter added that Infosys has lagged the market in 2025, trading about 25% below its peak levels, making the proposal a timely step to restore sentiment. He said all eyes are now on the September 11 board meeting for details of the buyback size, price, and method.

Technical Signals Turn Positive

SEBI-registered analyst Deepak Pal said Infosys has shown signs of recovery after a decline from July and has jumped back above ₹1,500, reclaiming its 20-day moving average at ₹1,490. 

Momentum is starting to build, with support holding around ₹1,470–1,450, and the next tests coming at ₹1,515–1,535, followed by a tougher barrier near ₹1,570–1,600. If the stock can stay above ₹1,515, it could open the door to more upside. 

On the other hand, a break below could keep the stock rangebound or test support levels again, he said.

Short-Term Momentum vs. Medium-Term Outlook

Pal also said short-term sentiment remains positive due to the buyback trigger and global tailwinds, though the medium-term outlook will depend on demand revival in the U.S. and Europe. 

He noted that sustaining above ₹1,500 is key for continued bullish momentum.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘high’ message volume.

Infosys’ stock has declined 19% so far in 2025.

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