Infosys Ltd Sees Heavy Volume Amid Sharp Price Decline and Downgrade

Trading Volume and Price Action Overview

On 13 Feb 2026, Infosys recorded a total traded volume of 1.07 crore shares, translating to a substantial traded value of approximately ₹1390.9 crores. This volume surge is notable given the stock’s average liquidity, with the current trade size comfortably exceeding ₹39 crores, indicating robust market participation. The stock opened sharply lower at ₹1293.9, down 6.65% from the previous close of ₹1386.0, and touched an intraday low of ₹1281.5, marking a new 52-week low. The last traded price at 09:44:46 IST stood at ₹1308.5, reflecting a day’s loss of 6.48%.

Infosys’s price underperformance was more pronounced than its sector peers, with the IT - Software sector declining by 4.41% and the broader Sensex falling 0.98% on the same day. The stock’s three-day consecutive fall has resulted in a cumulative return decline of 13.17%, signalling sustained selling pressure.

Technical and Fundamental Signals

The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a bearish technical setup. This alignment suggests that short-term and long-term momentum is negative, which may deter momentum-driven investors. The open gap down and the new 52-week low further reinforce the negative sentiment prevailing in the market.

Despite the price weakness, Infosys continues to offer a relatively attractive dividend yield of 3.32%, which may provide some cushion for income-focused investors. However, the downgrade in mojo grade from Buy to Hold on 9 Feb 2026, with a current mojo score of 60.0, signals a reassessment of the stock’s risk-reward profile by analysts. The market cap grade remains at 1, reflecting its large-cap status with a market capitalisation of ₹5,62,464 crores.

Investor Participation and Delivery Volumes

Investor participation has notably increased, with delivery volume on 12 Feb 2026 rising by 155.52% compared to the five-day average, reaching 1.51 crore shares. This surge in delivery volume suggests that investors are not merely trading intraday but are also holding shares, indicating accumulation or distribution dynamics at play. However, given the price decline, the elevated delivery volume likely points to distribution, where investors are offloading shares amid weakening fundamentals and technicals.

Sectoral Context and Comparative Performance

The IT - Software sector has been under pressure, falling 4.41% on the day, reflecting broader concerns over global technology spending and macroeconomic uncertainties. Infosys’s underperformance relative to the sector by 1.54% highlights company-specific challenges or profit-taking by investors. The stock’s large-cap status and liquidity make it a bellwether for the sector, so its weakness may weigh on overall market sentiment.

Quality and Rating Assessment

Infosys’s mojo grade downgrade from Buy to Hold on 9 Feb 2026 reflects a reassessment of its growth prospects and risk profile. The current mojo score of 60.0 places it in a neutral zone, suggesting that while the company remains fundamentally sound, near-term headwinds and valuation concerns have tempered enthusiasm. The downgrade may also reflect competitive pressures in the software and consulting industry, margin pressures, or slowing revenue growth.

Implications for Investors

The combination of heavy volume, sharp price decline, and mojo downgrade suggests that investors should exercise caution with Infosys in the near term. The technical breakdown below all major moving averages and the new 52-week low indicate a bearish trend that may persist until positive catalysts emerge. Investors should monitor upcoming quarterly results, management commentary, and sector developments closely.

For long-term investors, the attractive dividend yield of 3.32% and Infosys’s strong market position in the software and consulting industry remain positives. However, the recent price action and rating change imply that the stock may face volatility and downside risk in the short term.

Conclusion

Infosys Ltd’s trading activity on 13 Feb 2026 highlights a significant shift in market sentiment, with heavy volume and price weakness signalling distribution and caution among investors. The downgrade from Buy to Hold and the technical deterioration reinforce the need for a measured approach. While the stock remains a large-cap leader with solid fundamentals, the current environment favours a wait-and-watch stance until clearer signs of recovery or stability emerge.

Investors should also consider alternative opportunities within the sector or broader market that may offer better risk-adjusted returns, as identified by comprehensive evaluations such as SwitchER.

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