LIC-Backed IT Stock, Infosys Ltd Zooms Over 3% with Heavy Volume; Here’s Why!

Shares of LIC-Backed, Infosys Ltd saw a significant jump on Monday, December 22, 2025, rising over 3 per cent to reach Rs 1,692 per share. This surge was backed by a massive increase in trading activity, with more than double the usual number of shares being bought and sold. Investors reacted positively to news that helped clear up recent confusion regarding the company's stock performance.

A major reason for this climb was a clarification regarding "trading halts" that happened to Infosys shares on the New York Stock Exchange. The company explained that while its U.S.-listed shares (ADRs) experienced wild price swings and temporary pauses last Friday, there were no hidden problems or secret events causing the volatility. This transparency helped calm nervous investors and restored confidence in the stock.

Another boost came from the legal front. Infosys announced that a U.S. court has officially approved a USD 17.5 million settlement for lawsuits involving its subsidiary, McCamish Systems. By paying this amount into a fund, the company can put these legal battles behind it without admitting any wrongdoing. This settlement removes a dark cloud of uncertainty that had been hanging over the company for some time.

Finally, the overall mood in the technology sector was bright, as other Indian IT companies also saw their share prices rise. This general optimism, combined with the specific good news from Infosys, pushed the stock higher. Market experts believe that resolving the U.S. lawsuits and providing clear communication about trading issues have made investors much more comfortable holding the stock.

 About the Company

Infosys Ltd, the second-largest IT company in India, offers consulting, technology, outsourcing and digital services to help businesses with their digital transformation. They focus on both digital services (like AI and cloud migration) and core services (application development and management) across various industries like finance and retail, with most of their revenue coming from North America. It is the 2nd largest information technology company in India, behind Tata Consultancy Services Ltd (TCS).

As a prominent constituent of both the BSE Sensex and the NSE Nifty-50, this company maintains a formidable market presence with a capitalisation exceeding Rs 7,00,000 crore. Its institutional stability is further underscored by the Life Insurance Corporation of India (LIC), which holds a significant 11.09 per cent stake as of December 2025. Financially, the firm demonstrates exceptional efficiency and shareholder commitment, boasting a Return on Equity (ROE) of 29 per cent and a Return on Capital Employed (ROCE) of 38 per cent, alongside a consistent dividend payout ratio of 66 per cent. While the stock is currently trading 15.7 per cent below its all-time high of Rs 2,006.80, its long-term performance remains extraordinary, having delivered a staggering 1,681 per cent return since its initial public offering at Rs 95 in February 1993.

Disclaimer: The article is for informational purposes only and not investment advice.