Infosys share gained more than 3% today

August 20, 2025: Infosys share ended the day, today, 20^th August, up by 3.83% at Rs 1,495.10. Other IT stocks also gained today. Nifty IT index ended the day, up by 2.69%. Broader Nifty 50 index ended the day, Nifty 50 index ended the day, up by 0.28%. One reason for the gain is the expectation that US Federal Reserve may go for an interest rate cut in September. This may give a boost to US economy. Indian IT sector is heavily dependent on US clients.

Anticipating US Fed Rate Cut

US Federal Reserve’s annual Jackson Hole symposium will be held from August 21^st to 23^rd . The minutes of meeting at this symposium will give an insight into the monetary policy course that US central bank will pursue.

A 25-basis point rate cut can stimulate economic activity in the US, thereby boosting IT spending and indirectly benefiting Indian IT companies, particularly Infosys.

Another factor contributing to the positive sentiment towards IT stocks is the improved (and corrected) valuations, which may now appear more reasonable. As the Fed Rate cuts can lift the sentiments and valuations, there is a chance for average reversion in multiples.

The implication is that Indian IT stocks were overvalued, leading to a consistent decline in demand. With corrections over the past 3–6-month period, the prices look far more reasonable. If Fed rate cuts accompany this, US companies are most likely to increase their spending on technology and outsourcing, benefiting companies like Infosys.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE/ BSE.