Infosys Shares Fall 35% to ₹1,124, but Analysts Still See Upside Potential

Infosys has become one of the most-watched IT stocks in India after its share price declined nearly 35% from around ₹1,720 in February 2026 to ₹1,124 in June 2026. While the correction reflects concerns about global technology spending and AI disruption, several brokerages continue to see meaningful upside in the stock due to its strong position in digital transformation and generative AI services.

Why Has Infosys Fallen 35% Despite Strong Industry Position?

Infosys shares dropped from approximately ₹1,720 in February 2026 to ₹1,124, wiping out a significant portion of market value as investors reduced exposure to IT stocks amid slowing enterprise spending and economic uncertainty.

The broader Nifty IT Index has declined more than 23% in 2026, underperforming the Nifty 50, as concerns around AI disruption and delayed client spending affected sentiment across the sector. Recent pressure intensified after higher US inflation data raised expectations of prolonged interest rates, creating fresh worries about technology budgets in North America, a key market for Infosys.

What Makes Analysts Positive on Infosys?

• According to Analytics Insight, brokerage CLSA has maintained an outperform rating on Infosys with a target price of ₹1,512, implying an upside of more than 32% from current levels.
• CLSA estimates that the global generative AI opportunity could reach $300 billion to $400 billion by 2030, creating a major growth avenue for IT services firms such as Infosys.
• Infosys has already generated approximately $1 billion in GenAI-related services revenue, positioning the company among the leaders in enterprise AI adoption.

Investors Also Ask: Can Infosys Benefit From Artificial Intelligence?

Yes, analysts believe AI could become a significant revenue driver through consulting, automation, cloud migration, cybersecurity, and enterprise implementation services. Infosys has expanded its AI platforms and client partnerships to capture this opportunity. However, AI also presents a challenge because automation could reduce demand for some traditional outsourcing services that historically supported IT industry growth.

Investors Also Ask: What Levels Should Investors Watch?

Technical charts show Infosys remains below important resistance zones at ₹1,300, ₹1,450, and ₹1,600, indicating that investor confidence has not fully returned. The stock has recently experienced high volatility, including a 10% rally in three sessions during early June, demonstrating that sentiment can improve quickly when valuations become attractive.

Market Review: Is Infosys Becoming a Value Opportunity?

Infosys currently sits between two major market trends. On one side, investors remain cautious about slower global IT spending, economic uncertainty, and the impact of artificial intelligence on traditional outsourcing models. On the other side, the company continues to strengthen its presence in cloud computing, digital transformation, and enterprise AI services.

After falling 35% from its February peak, Infosys is trading at valuations that many analysts consider more attractive than earlier in the year. The company’s ability to secure large deals, expand AI-related revenue, and maintain margins will be closely watched over the next few quarters.

Analysts believe that if enterprise technology spending improves and AI investments begin contributing meaningfully to revenue growth, Infosys could move closer to the ₹1,512 target level projected by bullish brokerages. For investors, key indicators remain large deal wins, North American demand trends, and quarterly revenue growth performance.

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.