Infosys and other IT stocks slip up to 2% as profit-taking sets in after buyback-fueled rally, Fed caution looms

Infosys and other IT shares fell on Monday as investors booked profits following last week’s 4.3% rally in the sector, which was fueled in part by Infosys’ record Rs 18,000 crore buyback announcement. Caution also rose ahead of the US Federal Reserve’s policy meeting later this week.

The Nifty IT index declined 1% on the day, reversing some of last week’s gains and emerging as the biggest drag on the benchmarks. Infosys shares slipped 1.6% to Rs 1,501.40 on the BSE, giving back part of the 5% jump recorded last week following the buyback announcement.