Infosys shares drop 2.6% despite buyback proposal, end at Rs 1,425

Shares of Infosys declined 2.6 per cent to finish at Rs 1,425 on Tuesday, a day after the IT major said it will soon decide on a buyback programme. The stock underperformed both the Nifty and the Nifty IT index, which fell 1.5 per cent and 2 per cent, respectively.

The buyback proposal comes at a time when investor sentiment towards IT stocks has taken a sharp U-turn. From being the best-performing sector post the pandemic, IT stocks have fallen out of favour amid fears of a global recession. Shares of Infosys are down 25 per cent this year.

Analysts expect the company to announce a Rs 11,000-crore buyback. “Considering a net-worth of Rs 74,000 crore,