Shares of Infosys tumbled sharply on Friday, hitting a fresh 52-week low as investors reacted negatively to the company’s subdued growth outlook and broader weakness across technology stocks.
At around 11:01 am, Infosys shares were trading at Rs 1,178.20 on the NSE, down 5.03% or Rs 62.40 for the day. The fall made it one of the worst performers on benchmark indices as the IT pack remained under pressure.
The immediate trigger appears to be the company’s guidance for FY27, which disappointed the Street despite a better-than-expected quarterly profit.
Infosys has projected 1.5% to 3.5% constant-currency revenue growth for FY27, lower than many analyst expectations, reinforcing concerns that demand recovery in the IT sector may take longer than hoped.
While the company reported healthy March-quarter earnings, investors chose to focus on what lies ahead rather than what has already been delivered. In markets, forward guidance often matters more than backward-looking results.
The cautious outlook comes at a time when global clients, especially in the US and Europe, remain careful about technology spending.
Companies are still scrutinising budgets, delaying non-essential projects and taking longer to finalise contracts. That environment directly affects Indian IT exporters like Infosys, which derive a large portion of revenue from overseas markets.
There is also growing concern about pricing pressure linked to artificial intelligence-led automation. Analysts have flagged that while AI opens fresh opportunities, it may also reduce billing rates for some traditional services and intensify competition in parts of the outsourcing market.
Infosys was not alone in the sell-off. The , with peers such as Tata Consultancy Services, HCLTech and Tech Mahindra trading lower as sentiment toward the sector weakened.
Adding to the pressure was a risk-off mood in the wider market. Rising crude oil prices, global geopolitical tensions and foreign investor selling have made investors more selective, often prompting them to cut exposure to sectors dependent on overseas demand.
For long-term investors, the sharp fall raises the question of whether valuations are becoming attractive. But for now, the market seems more concerned about near-term growth visibility than bargain prices.
Friday’s drop shows the Street wants stronger evidence of recovery before turning positive on Infosys again. Until demand improves and guidance turns firmer, the stock may continue to face bouts of volatility.