Infosys Share Price Gains Amid Block Deal and US Tech Stock Surge
Infosys, one of India’s leading IT companies, witnessed a rise in its share price on Thursday, March 13, following a significant block deal and positive momentum in US technology stocks. The stock rose 0.16% to ₹1,593.40 per share on the National Stock Exchange (NSE) at 9:26 AM.
The key driver behind the movement was an open-market transaction by Infosys promoter Shruti Shibulal, who acquired shares worth ₹470 crore. This comes after she had already made another purchase of Infosys shares worth ₹494 crore earlier this week.
At the same time, the broader technology sector received a boost from a strong rally in US tech stocks. The Nasdaq Composite, a key benchmark for technology-heavy stocks in the US, jumped 1.22% (212 points) to settle at 17,648.45 on Wednesday, driven by optimism around artificial intelligence (AI) and cloud computing.
Block Deal: Shruti Shibulal Acquires Infosys Shares Worth ₹470 Crore
Infosys Share price movement was significantly influenced by a block deal that took place on Wednesday, March 12. According to data from the NSE, Shruti Shibulal, daughter of Infosys co-founder and former CEO SD Shibulal, purchased 29.84 lakh Infosys Share at an average price of ₹1,574 per share. This transaction amounted to ₹469.69 crore.
Shruti Shibulal is classified as a promoter in Infosys Share holding pattern. As per the most recent December 2024 quarter, she held a 0.07% stake in the Bengaluru-based IT giant.
Interestingly, this acquisition comes at a time when another family member of SD Shibulal, Gaurav Manchanda, sold exactly 29.84 lakh shares at the same price, indicating a possible internal shareholding restructuring within the promoter group.
Shruti Shibulal’s Recent Investments in Infosys
This is not the first time Shruti Shibulal has made a significant investment in Infosys this week. On March 11, 2024, she had already bought ₹494 crore worth of shares, taking her total investment in Infosys to ₹964 crore over just two days.
These purchases suggest strong confidence in Infosys’ future growth prospects from the promoter family, particularly in light of the company’s ongoing expansion in AI-driven and cloud-based technologies.
US Tech Rally Lifts Indian IT Stocks
Apart from internal shareholding developments, Infosys also benefited from the broader rally in US technology stocks. On March 12, 2024, the Nasdaq Composite Index surged by 1.22% (212 points), closing at 17,648.45.
The rally was led by top technology firms, particularly those involved in cloud computing, artificial intelligence (AI), and enterprise software. With Infosys heavily reliant on its US business—where it serves major banking, finance, and technology clients—the positive sentiment in the American IT sector contributed to the rise in Infosys Share
The US technology rally was primarily driven by:
- Optimism around AI: Companies investing heavily in AI, such as Microsoft, Nvidia, and Alphabet, saw strong gains.
- Cloud computing demand: Increased enterprise adoption of cloud platforms boosted investor confidence in IT service providers.
- Better-than-expected US economic data: Positive indicators around inflation and employment boosted investor sentiment across tech stocks.
Infosys Expands Collaboration with US-Based Financial Institution Citizens
In a separate development, Infosys announced an expanded strategic collaboration with Citizens, a leading US-based financial institution.
According to the exchange filing, Citizens will leverage Infosys’ deep expertise in financial services, AI, and cloud technologies to develop cloud-native domain platforms and accelerate its data center exit strategy.
The collaboration will be strengthened by Infosys Topaz, the company’s AI-powered suite of solutions designed to drive digital transformation.
Key Objectives of the Collaboration
- Leveraging AI and Cloud for Transformation: Infosys will assist Citizens in adopting AI-driven solutions to enhance efficiency and reduce operational costs.
- Developing Cloud-Native Domain Platforms: Citizens will use Infosys’ expertise to build cloud-based banking solutions, reducing dependency on legacy systems.
- Optimizing IT Infrastructure: The partnership aims to migrate workloads, rationalize applications, and improve overall system agility.
- Enhancing Banking Operations: By integrating automation and AI, Infosys will help Citizens streamline processes and enhance customer experience.
Infosys Executive Vice President (EVP) and Global Head of Banking and Financial Services, Dennis Gada, commented on the collaboration, saying:
“We are excited to strengthen our collaboration with Citizens by leveraging our AI expertise with Infosys Topaz, to advance their transformation objectives and business growth. As we transition to an AI-first world, this collaboration aspires to redefine the possibilities in banking, combining the strengths of both Infosys and Citizens in banking and technology.”
Infosys and Citizens: Past Achievements
Infosys has been working closely with Citizens for over five years. Together, they have achieved significant milestones, including:
- Developing and executing a comprehensive banking strategy
- Establishing a robust data lake for analytics and insights
- Developing enterprise APIs to enable seamless integrations
- Migrating critical workloads to the cloud
- Rationalizing applications and tools for better efficiency
- Achieving 90% automation in software testing
With this expanded partnership, Infosys is expected to further strengthen its presence in the banking and financial services (BFSI) sector, which remains one of its key revenue drivers.
Market Outlook for Infosys
With recent block deals, an expanded US partnership, and a supportive global tech environment, Infosys appears well-positioned for long-term growth.
Factors Driving Infosys Share Performance
- Promoter confidence: Shruti Shibulal’s purchase signals strong insider trust in Infosys’ future.
- Expansion in AI and cloud: Infosys’ strategic push towards AI-powered solutions and cloud services is likely to drive revenue growth.
- Positive US tech sentiment: As a major player in global IT services, Infosys benefits from strong performance in US tech stocks.
- Banking sector partnerships: Collaborations like the one with Citizens reinforce Infosys’ standing in the BFSI segment.
While short-term stock movements may depend on overall market trends, Infosys’ strong fundamentals and continued digital transformation initiatives make it an attractive long-term investment in the IT sector.
Conclusion
Infosys Share price rose on March 13, 2024, following a significant block deal by promoter Shruti Shibulal and a strong rally in US tech stocks. The company also announced an expanded strategic collaboration with Citizens, further strengthening its position in the banking and financial services sector.
As Infosys continues to enhance its capabilities in AI, cloud computing, and digital transformation, the company remains a strong contender in the global IT services industry. Investors will keep a close eye on future developments, particularly in AI-driven solutions and enterprise cloud migrations.
