Indian Markets Surge on Infosys Buyback and US Fed Rate Cut Expectations

Indian stock markets opened higher on September 12, 2025, buoyed by investor optimism following Infosys’s announcement of its largest-ever share buyback and growing expectations of a U.S. Federal Reserve interest rate cut. The Nifty 50 index rose 0.28% to 25,074.45, while the BSE Sensex climbed 0.26% to 81,758.95. This positive momentum was fueled by gains across multiple sectors, particularly information technology.

Infosys’s Record Buyback Announcement
Infosys, India’s second-largest IT services company, unveiled a ₹18,000 crore (approximately $2.04 billion) share buyback plan at ₹1,800 per share, a 19% premium over its previous closing price. This move is expected to return value to shareholders and reflects the company’s strong financial position. The announcement led to a 2% increase in Infosys’s stock price, contributing significantly to the day’s market gains.

US Fed Rate Cut Hopes Boost Investor Sentiment
Investor sentiment was further lifted by expectations of a U.S. Federal Reserve interest rate cut. Recent U.S. labor market data indicating softness have increased the likelihood of a rate reduction in upcoming Fed meetings. Lower U.S. interest rates are seen as favorable for emerging markets like India, potentially enhancing foreign investment inflows.

Sectoral Performance
The rally was broad-based, with 15 of the 16 major sectors in the green. The IT sector led the gains, rising about 1%, driven by Infosys’s buyback announcement. Small-cap and mid-cap stocks also advanced by 0.4% each, indicating widespread investor confidence.

Impact on Indian Investors
For retail investors, especially in Tier-2 cities, the market’s positive performance offers opportunities for portfolio growth. The anticipated rate cut by the U.S. Federal Reserve could make Indian equities more attractive to foreign investors, potentially leading to increased capital inflows and further market gains.

Conclusion
The Indian stock market’s upward trajectory on September 12, 2025, was propelled by Infosys’s significant buyback announcement and the prospect of a U.S. Federal Reserve rate cut. These developments have enhanced investor confidence, leading to gains across multiple sectors. As global economic conditions evolve, Indian markets remain poised to capitalize on favorable trends, offering potential benefits to investors nationwide.