New Delhi: Infosys has announced a massive Rs 18,000 crore share buyback, the largest in its history. This move aims to support the company’s stock performance amid weak growth in the IT sector. The announcement has sparked speculation that other tech giants, such as TCS, might follow with their own buybacks.

Expert Cautions on TCS Buyback Speculation

Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that while Infosys’ buyback positively impacts the IT sector, it doesn’t guarantee that TCS will announce a buyback. Market expectations exist, but a TCS buyback is not certain.

CLSA Weighs in on TCS Buyback Prospects

Following Infosys’ announcement, brokerage CLSA suggested that TCS may consider a buyback, possibly a tender offer worth around Rs 20,000 crore, rather than a large dividend payout, possibly in Q3.

TCS Buyback History

TCS has completed five buybacks since 2017:

2017, 2018, and 2020: Rs 16,000 crore each (shares bought at Rs 2,850-3,000)

Post-COVID buybacks in 2022 (Rs 18,000 crore) and 2023 (Rs 17,000 crore)

In total, TCS has spent about Rs 83,000 crore on share buybacks so far.

Management’s Motive for Buybacks

Buybacks typically signal management confidence in the business fundamentals and help boost investor trust. Khemka remarked that while TCS has a strong history of buybacks and dividends, the company might announce a new buyback following Infosys’ lead, but this remains uncertain.

TCS Growth Outlook for FY26

TCS revenue is expected to slow down in FY26 compared to FY25. The company reported a 3.3 percent quarter-on-quarter revenue decline in Q1 and a year-on-year decline as well. North America and Europe, key markets for TCS, showed reduced revenue, though there was some sequential recovery due to currency factors. Challenges in discretionary spending and sector-specific impacts from new tariffs and geopolitical tensions have pressured revenues, especially in BFSI and energy sectors. Brokerages anticipate recovery only from FY27 onwards, factoring in margin pressures from new deals such as BSNL.

Strong Order Pipeline and AI Focus

Despite near-term revenue challenges, TCS started FY26 with a robust order pipeline worth USD 9.4 billion, up 13.2 percent year-on-year. The company highlights “Agentic AI” as a key theme in client interactions and expects international revenue in FY26 to surpass FY25 levels.

TCS Share Performance

TCS shares have gained nearly 3 percent in the past week, rebounding from a steep 9 percent decline over the last three months. However, the stock remains down 30 percent in the past year and 23 percent year-to-date in 2025, reflecting broader sector pressures.

 

 

KAMALIA:

Finance Minister Muhammad Aurangzeb said on Sunday that Pakistan has been in close contact with the International Monetary Fund (IMF) as the global lender has shown understanding on the ongoing crisis, triggered by the recent floods.

During a visit to Kamalia tehsil in Toba Tek Singh, one of the worst-hit areas, the minister said, the government is prioritising and preferring to use domestic resources before seeking additional funds. “The whole world is watching the difficulties being faced by the Pakistani people,” he remarked.

Aurangzeb noted that infrastructure, including roads, bridges, and houses, had been badly damaged. He added, it would be inappropriate to send electricity bills to residents in disaster-hit zones at this stage.

Expressing gratitude, saying that the loss of life in Toba Tek Singh remained minimal, the minister prayed for the floodwaters to recede quickly so that farmers could begin planting the next crop. “We will rebuild the infrastructure and restore it to its original condition,” he assured.

Aurangzeb also praised the scale of the ongoing relief operation, calling it unprecedented in the country’s history. He extended special thanks to the Pakistan Army for their role in rescue and relief activities.

Earlier on Friday, the IMF expressed concern and deep sorrow over the loss of lives in Pakistan’s recent devastating floods and announced that its second economic review mission would also assess the disaster’s impact on the economy, as well as the financial requirements for the recovery and reconstruction.

According to sources, the IMF team will evaluate whether Pakistan’s fiscal policies and emergency measures are sufficient to deal with the crisis.

New Delhi: The coming week is expected to be crucial for Indian stock markets as investors look ahead to key global and domestic developments. The US Federal Reserve’s policy meeting, progress on India’s trade deals with the US and the EU, and the trend of foreign institutional investors (FIIs) will likely set the tone for market movements.

Market experts believe that the US Fed may cut interest rates by 25 basis points in its upcoming meeting. A deeper cut of 50 basis points, however, would be a surprise and could boost sentiment in global markets, including India. (Also Read: Mcap Of 8 Most Valued Firms Jumps By Rs 1.69 Lakh Crore Amid Market Rally)

Updates on India’s trade negotiations will also be closely tracked. Last week, Commerce and Industry Minister Piyush Goyal said that discussions on an India-US trade deal are ongoing and that the first phase could be finalised by November.

He also noted that talks on the India-EU trade deal are at an advanced stage. FII activity will be another key driver for the markets. Out of the last five trading sessions, FIIs were net buyers in two, with inflows worth Rs 129.58 crore on Friday alone. This indicates that the FII trend is slowly turning positive.

The previous week was strong for Indian equities. The Nifty gained 373 points, or 1.51 per cent, to close at 25,114, while the Sensex climbed 1,193.94 points, or 1.48 per cent, to end at 81,904.70. Looking ahead, experts maintain a positive stance on equities. They suggest focusing on domestic cyclicals such as autos, metals, and consumer discretionary, while keeping a balance with defensives like select FMCG and pharma stocks. (Also Read: ITR Filing 2025: Has ITR Filing Deadline Extended? Here’s The Update)

On the technical front, analysts at Religare Broking said the Nifty has tested its previous swing high near 25,150. “While some consolidation cannot be ruled out, the outlook remains positive with the next upside target seen in the 25,250–25,500 range,” Ajit Mishra said.

“On the downside, immediate support lies at 24,800, with the 100-DEMA around 24,650 acting as a stronger cushion,” Mishra added. For Bank Nifty, the index is hovering near resistance at 55,000, where the 100-DEMA aligns with price hurdles.

“A breakout above this level could trigger short covering and open the way for 56,200, while support exists in the 54,000–54,400 zone and major support at the 200-DEMA near 53,600,” Mishra mentioned.