Infosys Shares Rally Near 2 Per Cent After Five-Year Deal With Liberty Global

Infosys shares surged nearly 2 per cent in early trade on Wednesday after the company signed a deal worth $1.64 billion with Liberty Global to evolve and scale its digital entertainment and connectivity platforms. It was among the few IT stocks that surged above 1 per cent on the NSE. The IT major was the top gainer on the Nifty IT index and Nifty50.

Infosys stock opened in green at Rs 1,410.80 per share levels on the NSE and went on to hit an intraday high of Rs 1,419.95 per share, witnessing a 1.8 per cent rise against its Monday close of Rs 1,393.55 per share. The stock ended 1.75 per cent higher at Rs 1,417.90 per share on the BSE.

The two companies have inked a five-year deal, extendable to eight years or beyond.

Under this collaboration, Infosys will take over the management of the UK-based company’s entertainment and connectivity platforms, incorporating its AI innovation, Infosys Topaz.

"This move has the potential to introduce next-generation digital entertainment and connectivity services, such as Horizon, to millions of new customers worldwide for the first time," the companies said in a joint statement released on Tuesday.

"Recently, HCL Tech announced collaboration with global tech giant Verizon Business. This has already bring momentum in Indian IT company stocks. After this, Infosys sealed a deal with Liberty Global, which has further boosted the morale of stock market bulls in regard to IT stocks," said Saurabh Jain, Vice President, Research at SMC Global Securities.

In July this year, Infosys signed a confidential five-year AI deal with an undisclosed client with a target expenditure of $2 billion.