Infosys Share Price: IT Stock Infosys shares tumbled nearly 5% on March 12, hitting their lowest levels since July 2024. The decline followed downgrades from major brokerage firms, citing concerns over reduced discretionary spending by US clients.
According to News18 Repor Inft Morgan Stanley lowered its rating on Infosys from ‘overweight’ to ‘equal-weight,’ highlighting worries about slowing growth and valuation pressures. The brokerage also cut its price target to ₹1,740 from ₹2,150.
Similarly, Motilal Oswal Financial Services downgraded Infosys to ‘Neutral,’ pointing to geopolitical uncertainties and the risk of a trade war due to US tariff policies. The firm noted that businesses are adopting a cautious stance, delaying IT spending decisions.
Beyond Infosys, Motilal Oswal also downgraded Wipro to ‘Sell’ but upgraded Tech Mahindra to ‘Buy.’ It favored LTI Mindtree and TCS for their strong risk-reward balance, while recommending Coforge and Persistent in the mid-cap segment as potential buying opportunities. L&T Tech Services was downgraded to ‘Neutral’ over valuation concerns.
The Indian IT sector has faced headwinds in 2025 despite a weaker rupee, with fears of a US economic slowdown and trade policy uncertainty weighing on sentiment. The Nifty IT index has declined 14% this year, making it one of the worst-performing sectors after real estate.
North America remains a key market for Infosys, contributing over 60% of its revenue in FY24. With global demand softening, investors are keeping a close watch on the overall outlook for Indian IT services.
However, not all analysts are bearish. Last week, CLSA upgraded Infosys from ‘hold’ to ‘accumulate,’ setting a 12-month target of ₹1,978. Trendlyne data shows that among 40 analysts tracking Infosys, 28 maintain a ‘buy’ rating, with a consensus target of ₹2,097—suggesting a potential 26% upside from Tuesday’s closing price.
Over the past year, Infosys shares have gained 3.81% but have dropped 11.41% in the past month, including a 1.58% decline in the last week.
Infosys’ sharp fall contributed significantly to the Nifty IT index’s 3% drop on March 12. Other IT stocks also suffered losses, with Wipro falling over 5% to ₹263 per share, while HCL Tech, LTI Mindtree, and Persistent each declined more than 3%.
(Disclaimer: The views and investment advice mentioned are those of analysts and do not reflect the stance of this website. Investors should consult certified financial experts before making any investment decisions.)
