The share price of Infosys climbed 4% today, February 17. This has also helped lift the broader IT pack for a second straight session.
The rebound comes after a period of weakness in technology stocks. The key factor was because investors worried about how fast artificial intelligence could disrupt traditional IT services.
At the same time, in today’s trading session, the Nifty IT index was trading about 2% higher, with all ten of its constituents in the green.
Infosys led the rally with gains of about 3%. HCL Technologies, Wipro, Mphasis and Oracle Financial Services Software were up in the range of 1-2%. Meanwhile, LTI Mindtree, Tata Consultancy Services, Tech Mahindra and Coforge were trading close to 1% higher.
“While the sector’s outlook for FY27-28 appears muted compared with the strong performance of the past 2–3 years, this is getting reflected in current subdued valuations. At the same time, the environment is offering opportunities for long‑term investors to re‑enter the space, as more clarity is likely to emerge over the short to medium term,” said Vinod Nair, Head of Research, Geojit Investments.
So what is the key reasons behind the jump in Infosys shares? Here are 5 key developments investors are tracking.-
AI partnership with Anthropic
The biggest reason is Infosys’ new collaboration with US-based AI research firm Anthropic. The two companies plan to work together to build advanced AI solutions for large enterprises. The partnership will start with the telecom sector and later expand into financial services, manufacturing and software development.
Focus on ‘agentic AI’
Unlike basic AI tools that simply answer questions, this partnership focuses on what the company calls “agentic AI.” In simple terms, these are AI systems that can handle multi-step tasks on their own.
In the exchange filing, the company said, “At its core, the collaboration integrates Anthropic’s Claude models, including Claude Code, with Infosys Topaz AI offerings to help enterprises automate complex workflows, accelerate software delivery, and adopt AI with the governance and transparency that regulated industries require.”
Nandan Nilekani predicts focus on AI jobs
Separately speaking at the Infosys AI Investor Day, Nandan Nilekani highlghted how legacy jobs will now give way to high growth AI jobs. He predicts creation of 170 million new jobs compared to 92 million jobs lost.
Telecom as the starting point
The first phase of the collaboration will focus on telecom companies. Infosys and Anthropic plan to set up a centre to develop AI tools tailored to telecom operations.
Salil Parekh, Chief Executive Officer, Infosys, said, “AI is not just transforming business – it is redefining the way industries operate and innovate. Our collaboration with Anthropic marks a strategic leap toward advancing enterprise AI, enabling organizations to unlock value and become more intelligent, resilient, and responsible. From modernizing financial services with intelligent risk management and compliance, to enabling engineering businesses to lead with AI-driven design and manufacturing, the goal is to leverage the joint expertise of Infosys and Anthropic to accelerate AI value realization for global enterprises.”
Sector-wide relief rally
The broader Nifty IT index gaining nearly 2%. After recent declines driven by fears that AI could reduce demand for traditional outsourcing, investors may now be reassessing those concerns.