Nifty Reclaims 25,100, Sensex Rises 356 Points: Markets Post Biggest Weekly Gain in Nearly Three Months

The Indian equity markets wrapped up the week on a strong note, with the Nifty 50 climbing above the 25,100 mark and the Sensex rising by 356 points. This marks the biggest weekly gain in nearly three months, driven by a mix of global optimism, domestic resilience, and sectoral momentum.

Market Snapshot

  • Nifty 50: Closed at 25,119.25, up 113.75 points
  • Sensex: Ended at 81,938.86, up 397.16 points
  • India VIX: Dropped 1.76% to 10.18, indicating low volatility
  • Derivatives Action: Strong put writing at 25,000 strike; heavy call open interest at 25,500 suggests bullish bias with resistance ahead

This rally marks eight consecutive sessions of gains for benchmark indices, supported by robust buying in financial services, IT, and mid-cap stocks. The Nifty Financial Services index alone rose nearly 3% over the week, with Bajaj Finance, Axis Bank, and Shriram Finance leading the charge.

What’s Fueling the Rally?

Global Tailwinds

Softer U.S. jobs data and rising expectations of a Federal Reserve rate cut have made emerging markets like India more attractive to foreign investors. Asian markets, including Japan and South Korea, hit record highs on optimism around AI-driven earnings and easing monetary conditions.

India–U.S. Trade Optimism

Renewed diplomatic engagement between India and the U.S. has lifted sentiment, especially in export-driven sectors like IT and textiles. Anticipation of tariff rollbacks and GST rationalization is boosting investor confidence.

Technical Breakouts

Nifty has crossed key resistance levels, with analysts now eyeing 25,200 to 25,400 as the next upside targets. Momentum indicators show bullish crossovers, and the Put-Call Ratio has climbed to 1.15, reinforcing the positive undertone.

Sector Highlights

  • IT Stocks: Infosys gained 2% following its ₹18,000 crore buyback announcement, leading gains in the tech space.
  • Financial Services: Bajaj Finance, Axis Bank, and LIC Housing Finance posted strong gains amid rising credit demand and stable macro indicators.
  • Mid & Small Caps: Continued to outperform, reflecting strong domestic participation and retail investor confidence.

Strategic Takeaways for Traders

This rally presents multiple opportunities for both short-term and positional traders:

  • BTST and intraday setups in trending financial and IT stocks
  • Options strategies around Nifty’s breakout levels and sector rotation
  • Swing trades in mid-cap names with strong volume and momentum

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Infosys Announces ₹18,000-Crore Share Buyback: What It Means for 26 Lakh Shareholders

Infosys, India’s second-largest IT services company, has announced a massive ₹18,000-crore share buyback, offering ₹1,800 per share—a 19 percent premium over its recent market price of ₹1,512. This move directly affects over 26 lakh shareholders and signals strategic capital deployment during a period of global tech uncertainty.

Key Highlights of the Buyback

  • Buyback Size: ₹18,000 crore
  • Buyback Price: ₹1,800 per share
  • Premium Offered: Approximately 19 percent
  • Shares to be Bought Back: 10 crore equity shares
  • Route: Tender offer
  • Equity Impact: 2.41 percent of total paid-up capital

This is Infosys’ fifth buyback since 2017 and its first via the tender route since 2019. Unlike open market repurchases, the tender offer ensures price certainty and proportionate acceptance, making it more inclusive for retail investors.

Why Infosys Is Buying Back Shares Now

Infosys stock has been under pressure, down nearly 20 percent year-to-date due to weak global IT demand and cautious client spending. The buyback is seen as a vote of confidence from management, aiming to:

  • Boost earnings per share (EPS)
  • Improve return on equity (ROE)
  • Provide tax-efficient returns compared to dividends
  • Support the stock price in the near term

Brokerages have responded positively, with target prices ranging from ₹1,700 to ₹1,880. The move aligns with Infosys’ capital allocation policy of returning 85 percent of free cash flow to shareholders between FY25 and FY29.

Impact on Shareholders

Retail investors stand to benefit from:

  • Exiting at a premium during a weak market phase
  • Participating in a low-risk arbitrage
  • Potential post-buyback rally and EPS accretion

Acceptance ratio will depend on the number of shares tendered. Historically, Infosys buybacks have led to short-term price stability, though long-term growth depends on how the company adapts to AI-led disruption and global tech shifts.

Strategic Takeaways for Traders and Investors

This buyback is more than a corporate action—it’s a signal. Infosys holds over ₹40,000 crore in cash reserves and is choosing to reward shareholders rather than pursue aggressive capex. For traders and investors, this opens up several strategic angles:

  • Short-term arbitrage for Infosys holders
  • Options trading opportunities around buyback volatility
  • Sector rotation strategies as IT stabilizes
  • Fundamental re-entry for long-term portfolios

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