Infosys, HCL Technologies, TCS and Wipro shares were trading lower on Monday as Accenture declined 11 percent in New York on Friday. Accenture reported strong results and even the guidance was positive but the stock faced selling pressure. Indian IT companies opened Monday's session with decline and we can expect majority of stocks in the segment to close the trading session with decline. Infosys was down by nearly 3 percent and the stock has led the fall among IT stocks. Despite the short term bearish trend, Infosys remains a strong medium to long term bet in the Indian IT space. TCS stock was also trading lower amid selling pressure. Tech Mahindra, Wipro and HCL Technologies were also trading with decline but major selling was witnessed in Infosys Limited.

h2>Infosys Faces Turbulence Amid Global Headwinds, Yet Analysts Eye Long-Term Resilience

In 2025, the narrative around Infosys Limited (NSE: INFY, NYSE: INFY) remains as layered as the macroeconomic challenges confronting the global tech services industry. On June 23, Infosys’s shares dipped 2.28% to Rs. 1,582, under pressure from global volatility and cautious investor sentiment. Despite this, the IT bellwether holds strong fundamentals, a robust balance sheet, and a dividend legacy spanning 25 years. Analysts, while cautious, largely retain a constructive long-term stance, albeit with trimmed short-term expectations. From foreign exchange advantages to weak global IT budgets, Infosys walks a tightrope of opportunity and risk in a year marked by tightening enterprise tech spending.

Short-Term Stock Movement and Market Sentiment

On June 23, 2025, Infosys fell by 2.28%, accompanied by elevated trading volume—over 3.5 million shares exchanged hands. While the BSE 100 index also trended lower, Infosys remained a standout laggard in the large-cap space. Over the past one month, the stock has risen 3.47%, yet on a six-month horizon, it has lost 17.8%, reflecting a persistently cautious outlook from investors.

Infosys’s 52-week high is Rs. 2,006.45, while the 52-week low is Rs. 1,307.00, underscoring significant volatility and investor uncertainty.

Valuation Metrics and Market Position

The company commands a market capitalization of Rs. 6,56,548 crore, with a Price-to-Earnings (P/E) ratio of 25.23 and a Price-to-Book (P/B) ratio of 6.99. On the NYSE, the ADRs trade at $17.70, down nearly 4% in the latest session.

The stock appears modestly valued relative to peers. Infosys trades at an 8% discount to TCS and 4% below Accenture, though this valuation gap has narrowed in recent quarters.

Sectoral Trends: Macroeconomic Pressure and Client Retrenchment

The broader IT sector is under stress due to declining global tech budgets. Accenture’s latest results, highlighting a 6% drop in new bookings, sent ripples across Indian IT stocks, including Infosys. With clients tightening discretionary tech spending, especially in BFSI and retail, the outlook remains cloudy.

That said, a forex tailwind of 0.2% could offer some cushion to Infosys’s earnings, especially with a weakening rupee supporting exporter profitability.

Broker Sentiment and Analyst Revisions

Despite the sectoral drag, broker sentiment is broadly constructive, though conservative. The average 12-month price target for the NYSE-listed ADR sits at $17.48, with a “moderate buy” consensus. Recent analyst movements are as follows:

Indian brokerages reflect similar caution:

Jefferies: Retains Infosys as a top pick with a trimmed target of Rs. 1,619.70.

Motilal Oswal: Maintains “buy” with a revised target of Rs. 1,760.

ICICI Securities: “Hold” rating with target of Rs. 1,506, citing margin concerns.

Key Financials: Dividend, EPS, and Operating Strength

Infosys continues to be a dependable dividend stock. It recently declared a $0.26 dividend for the June quarter. With a gross profit margin of 29.65%, the company retains healthy profitability and a debt-light balance sheet. EPS currently stands at Rs. 64.32.

Technicals: Volatility and Signals to Watch

Infosys’s day-level volatility stands at 3.02%, while the 52-week price variation touches 33.54%. A 5-day moving average crossover on June 20 has historically preceded average 7-day gains of 1.89%, according to pattern-based backtesting.

However, traders should remain cautious. Infosys is part of the Nifty IT index, which has seen pressure due to Accenture’s 11% plunge following its Q3 results. The street cited booking weakness as a key risk, echoing concerns for Indian IT giants.

Growth Catalysts and Strategic Initiatives

1. Digital Transformation: Cloud, AI, and automation remain core growth vectors, especially in North America and Europe.

2. Operational Efficiency: A strategic cut in subcontractor dependency and optimization of global delivery centers aims to improve margin resilience.

3. Diversified Client Base: Infosys has reduced concentration risk with a well-spread client portfolio across multiple verticals and geographies.

Risks and Near-Term Challenges

Demand Softness: Primary concern stems from slowing IT budgets in the U.S. and Europe.

Competitive Pressures: TCS, Accenture, and mid-cap disruptors like HCL Tech are intensifying margin and pricing battles.

Forex and Macro Volatility: Unpredictable currency swings could impact Q1 FY26.

Sector Exposure: Over 40% of revenue arises from BFSI and retail—two sectors currently scaling back IT investment.