By Shailesh Kadam
Copyright indiatimes
ETMarkets.comWhile buybacks result in a reduction in the number of outstanding shares, they also indicate how companies want to allocate the capital at that juncture.
Mumbai: Investors may have a reason to cheer Infosys’ latest share buyback announcement. In the past, the stock has mostly risen in three- and six-month periods after the information technology bellwether announces buying back the shares.On Tuesday, Infosys shares rose 5% after the company said its board would meet on Thursday to decide on the buyback. Other stocks in the sector gained between 1% and 3% with the Nifty IT index jumping 2.8%. The benchmark Nifty gained 0.4%.This will be the fifth share buyback by the IT firm, whose shares are down over 20% so far in 2025 amid concerns over a US slowdown.AgenciesData from ETIG shows that from the day of the announcement of such an offer, Infosys shares rose on three out of the four occasions over three- and six-month periods. During the one-month periods, the share performances have been mixed.Companies use share buybacks as a signal to convey to investors the management’s confidence in the business. While buybacks result in a reduction in the number of outstanding shares, they also indicate how companies want to allocate the capital at that juncture.Live EventsAdd as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our ETMarkets WhatsApp channel)Read More News onInfosysinfosysshare buybackNifty IT indexinvestorsUS slowdownstock market performance(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price…moreless
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