Infosys Ltd Faces Sharp Decline Amidst High-Value Trading and Institutional Caution

Trading Activity and Price Movement

On 24 Feb 2026, Infosys recorded a total traded volume of 52,06,324 shares, translating into a substantial traded value of approximately ₹6,706.47 crores. This places Infosys among the most actively traded equities by value on the day, underscoring its continued prominence in market participation. However, the stock opened sharply lower at ₹1,301.0, down 2.0% from the previous close of ₹1,327.5, and further declined to an intraday low of ₹1,277.1 before settling near ₹1,279.5 at the last update.

The day’s price action culminated in a 3.54% loss, underperforming the IT - Software sector’s decline of 3.12% and the broader Sensex’s modest fall of 0.89%. Notably, Infosys hit a new 52-week low of ₹1,281 during the session, signalling heightened selling pressure and a potential shift in market sentiment.

Technical and Trend Analysis

From a technical standpoint, Infosys is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a bearish momentum across multiple timeframes. The stock has experienced a consecutive five-day decline, cumulatively losing 7.77% over this period. This persistent downtrend suggests that short-term investor confidence is waning, possibly influenced by broader sectoral headwinds and profit-booking.

Liquidity remains robust, with the stock’s average traded value over five days supporting trade sizes up to ₹49.71 crores comfortably. However, delivery volumes have shown a decline; on 23 Feb 2026, delivery volume stood at 71.62 lakh shares, down 6.64% against the five-day average, signalling reduced investor participation in holding shares amid the recent price weakness.

Institutional Interest and Market Capitalisation

Infosys commands a formidable market capitalisation of ₹5,38,643 crores, categorising it as a large-cap stock within the Computers - Software & Consulting industry. Despite its size and sector leadership, the company’s Mojo Score has recently been downgraded from a Buy to a Hold on 9 Feb 2026, reflecting a more cautious stance by analysts. The current Mojo Score stands at 57.0, with a Mojo Grade of Hold, signalling tempered expectations amid the prevailing market conditions.

Market participants should note that the stock’s Market Cap Grade is rated at 1, indicating a top-tier valuation status. However, the downgrade in analyst sentiment and the recent price weakness suggest that investors are reassessing the risk-reward profile of Infosys in the near term.

Dividend Yield and Investor Appeal

One of the few positives for long-term investors is Infosys’s attractive dividend yield of 3.47% at the current price level. This yield remains competitive within the IT sector and may provide some cushion for income-focused investors amid the stock’s price volatility. Nevertheless, the recent decline in delivery volumes hints at a cautious approach by institutional investors, possibly awaiting clearer signs of a turnaround or sector recovery.

Sectoral Context and Comparative Performance

The IT - Software sector has been under pressure, falling 3.12% on the day, with Infosys marginally underperforming the sector by 0.42%. This underperformance is significant given Infosys’s role as a bellwether stock within the sector. The broader market, represented by the Sensex, declined by 0.89%, indicating that sector-specific factors are weighing more heavily on Infosys and its peers than general market trends.

Investors should consider that Infosys’s current weakness is part of a wider sectoral correction, influenced by global technology demand concerns, currency fluctuations, and evolving client spending patterns. These factors have contributed to subdued investor enthusiasm and increased volatility in large-cap IT stocks.

Outlook and Investor Considerations

Given the current technical weakness, reduced delivery volumes, and a downgrade in analyst ratings, investors should approach Infosys with caution in the short term. The stock’s breach of multiple moving averages and the establishment of a new 52-week low suggest that downside risks remain elevated. However, the company’s strong market capitalisation, sector leadership, and attractive dividend yield continue to offer a foundation for potential recovery once market conditions stabilise.

Institutional investors appear to be recalibrating their positions, possibly awaiting clearer signals from quarterly earnings or macroeconomic developments. For retail investors, monitoring volume trends and price action in conjunction with sectoral movements will be critical to timing entries or exits effectively.

In summary, while Infosys remains a key player in the IT sector with robust fundamentals, the current market environment demands a measured approach. The stock’s recent underperformance and technical deterioration highlight the need for vigilance and a focus on risk management.

Key Metrics Recap:

• Last Traded Price (LTP): ₹1,279.5
• Day’s High / Low: ₹1,303.6 / ₹1,277.1
• Total Traded Volume: 52.06 lakh shares
• Total Traded Value: ₹6,706.47 crores
• 52-Week Low: ₹1,281 (hit today)
• Consecutive 5-day fall: -7.77%
• Dividend Yield: 3.47%
• Mojo Score: 57.0 (Hold, downgraded from Buy on 09 Feb 2026)
• Market Cap: ₹5,38,643 crores (Large Cap)

Investors should continue to monitor Infosys’s price action alongside sectoral developments and institutional activity to gauge the stock’s trajectory in the coming weeks.

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