Infosys Ltd Falls 3.90%: 5 Key Factors Behind This Week’s Market Pressure

23 February 2026: High-Value Trading Amid Declining Momentum

Infosys commenced the week with significant trading activity, recording a traded value of ₹362.93 crore and volume exceeding 27 lakh shares. Despite this liquidity, the stock price fell 1.80% to close at Rs.1,328.45, underperforming the Sensex’s 0.39% gain. Technical indicators showed the stock trading below all key moving averages, signalling bearish momentum. Institutional participation waned, with delivery volumes dropping 43.87% compared to the five-day average, reflecting cautious investor sentiment.

24 February 2026: Fresh 52-Week Low Amid Sector Downturn

The stock declined sharply by 3.91% to Rs.1,276.55, hitting a new 52-week low. This drop outpaced the IT sector’s 3.22% fall and the Sensex’s 0.78% decline. Intraday volatility was elevated, with the stock touching Rs.1,285 before closing near the low. The five-day cumulative loss reached 7.92%, underscoring sustained selling pressure. Despite strong fundamentals such as a 34.8% ROE and a 3.47% dividend yield, the stock’s technical position remained weak, trading below all major moving averages. Institutional caution persisted amid high-value trading of ₹670.65 crore and declining delivery volumes.

25 February 2026: Intraday High Signals Short-Term Rebound

After five consecutive days of decline, Infosys rebounded with a 1.08% gain, closing at Rs.1,290.35 and hitting an intraday high of Rs.1,314.80, a 3.33% surge from the previous close. The stock outperformed the IT sector’s 2.11% gain and the Sensex’s 0.41% rise, supported by robust value trading of ₹629.85 crore and increased delivery volumes by 120.72%. However, the stock remained below key moving averages, indicating the rally was a short-term bounce rather than a confirmed trend reversal.

26 February 2026: Modest Gains Amid Mixed Technical Signals

Infosys gained 0.08% to close at Rs.1,289.35, supported by a traded value of ₹275.69 crore and volume of over 21 lakh shares. Despite the modest rise, the stock remained below all key moving averages and close to its 52-week low, signalling ongoing technical challenges. Delivery volumes declined 10.98%, suggesting reduced long-term investor commitment. The stock’s dividend yield remained attractive at 3.57%, and its market capitalisation stood at ₹5,23,287 crore. The cautious market environment was reflected in the Mojo Grade of Hold, downgraded from Buy earlier in the month.

27 February 2026: Strong Value Turnover Despite Technical Caution

Closing the week, Infosys rose 0.82% to Rs.1,299.95, supported by a traded value of ₹473.05 crore and volume exceeding 35 lakh shares. The stock outperformed the Sensex, which declined 1.16%, and the IT sector’s 0.71% gain. However, it remained below all major moving averages and just 3.17% above its 52-week low. Delivery volumes dropped sharply by 47.63%, indicating a shift towards short-term trading rather than long-term holding. The Mojo Score remained at 57.0 with a Hold rating, reflecting a balanced but cautious outlook amid mixed technical and fundamental signals.

Key Takeaways

1. Sustained Downtrend: Infosys experienced a five-day consecutive decline culminating in a 7.92% loss by 24 February, hitting a 52-week low of Rs.1,276.55. The stock consistently traded below all major moving averages, signalling bearish momentum.

2. Institutional Caution: Delivery volumes declined notably during the week, with a 43.87% drop on 23 February and a 47.63% fall on 27 February compared to five-day averages, indicating reduced long-term investor commitment.

3. High Liquidity and Value Trading: Despite price weakness, Infosys remained among the most actively traded stocks by value, with daily turnovers exceeding ₹270 crore on multiple days, supporting ease of trade execution.

4. Dividend Yield Appeal: The stock maintained an attractive dividend yield around 3.5%, offering income appeal amid volatile price action.

5. Mixed Technical Signals: Short-term rebounds on 25 and 27 February showed potential recovery attempts, but the stock’s position near 52-week lows and below key averages suggests caution remains warranted.

Conclusion

Infosys Ltd’s performance over the week ending 27 February 2026 reflected a challenging environment characterised by sustained selling pressure, technical weakness, and cautious institutional participation. The stock’s decline of 3.90% outpaced the Sensex’s 0.96% fall, underscoring company-specific headwinds amid broader sectoral weakness. While intermittent rebounds and high liquidity provided some support, the stock remains near its 52-week low and below all major moving averages, signalling ongoing technical challenges. The Mojo Grade of Hold and a Mojo Score of 57.0 reflect a tempered outlook. Investors should monitor delivery volumes, price action relative to moving averages, and sector developments closely to gauge potential shifts in momentum. The attractive dividend yield offers some defensive appeal, but the overall risk-reward profile suggests prudence in the near term.

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