Infosys share price drops 3% to lowest level since April 2023; m-cap slips below ₹5 lakh crore

Shares of Infosys, the country's second-largest software maker, came under renewed selling pressure in Tuesday's session, March 17, falling nearly 3% to ₹1,215, marking the lowest level since April 2023, as the sell-off in tech stocks continued to expand even as the broader market showed signs of recovery.

Today's decline has brought the stock’s month-to-date fall to 5%, following a sharp 21% crash in February, which was also the steepest monthly decline the stock has seen in over a decade.

The sustained sell-off has wiped out ₹1,72,530 crore from the company’s market capitalisation in less than two months, bringing it below the ₹5 lakh crore mark to around ₹4.92 lakh crore at today’s low. At its peak, the company was valued at ₹8.37 lakh crore.

The steep fall in the stock has also inflicted significant losses on domestic mutual funds, one of its key investor segments.

Apart from AI disruption fears that rattled broader tech stocks in February, the sector is now witnessing another round of selling as investor concerns grow that higher crude oil prices—driven by the US-Israel conflict with Iran—could prompt developed central banks, including the US Federal Reserve, to pause the rate-cutting cycle and potentially revise inflation estimates higher.

Higher interest rates could curb discretionary spending in the US, potentially leading to fewer deal wins for Indian tech companies, given their heavy reliance on the US market.

The US Federal Reserve is scheduled to announce its policy decision on March 18, where policymakers are widely expected to keep interest rates unchanged, with traders currently pricing in only one 25-basis-point rate cut, possibly in September.

Domestic brokerage JM Financial Institutional Securities, in its latest management meeting update, said the demand environment remains largely unchanged and steady compared to the beginning of the quarter.

The Infosys management reiterated its FY26 revenue growth guidance of 3–3.5% in constant currency (YoY), which implies a growth range of -1.6% to +0.2% for Q4FY26E at the lower and upper ends, respectively, with the lower end factoring in elevated macroeconomic uncertainty.

The brokerage noted that the Financial Services and Energy, Utilities & Resources verticals are witnessing early signs of recovery in discretionary spending, with both segments expected to perform better in FY27E compared to FY26E. It also highlighted that the deal pipeline remains healthy.

Further, the management reaffirmed its FY26 margin guidance of 20–22%, adding that wage hikes have not yet been decided and are unlikely to be implemented in Q4FY26E. At current levels, the stock is trading at around 17x FY27E consensus EPS, with the brokerage maintaining a 'Buy' rating.

Infosys to announce Q4FY26 results on April 23

The tech bellwether on Sunday, March 15, said it will announce its financial performance for the March-ending quarter (Q4 FY26) and the financial year FY26 on Thursday, April 23.

This will be followed by a press conference with the company’s leadership team to discuss the financial results for the quarter and year ending March 31, 2026, along with the business outlook.

Infosys also informed investors that the trading window will remain closed from March 16, 2026, to April 26, 2026, in compliance with the SEBI (Prohibition of Insider Trading) Regulations.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.