Infosys Ltd Sees High-Value Trading Amid Market Volatility; Institutional Interest Remains Strong

Robust Trading Volumes Highlight Investor Interest

On 5 Jan 2026, Infosys recorded a total traded volume of 11,76,981 shares, translating into a substantial traded value of ₹1,893.33 million (₹189.33 crore). This places Infosys among the most actively traded equities by value on the day, underscoring sustained institutional and retail interest. The stock opened at ₹1,637.0 and reached an intraday high of the same level, but also touched a low of ₹1,589.0, indicating notable price volatility within the session.

The last traded price (LTP) stood at ₹1,591.2 as of 09:44:46 IST, marking a decline of 3.35% from the previous close of ₹1,640.4. This drop contrasts with the broader Sensex, which fell marginally by 0.15%, and the sector index, which declined by 1.83%, signalling that Infosys underperformed both benchmarks on the day.

Price and Trend Analysis

Infosys has experienced a trend reversal after two consecutive days of gains, with the stock price retreating sharply on 5 Jan. The intraday low of ₹1,593.9 represents a 2.83% dip from the previous close, reflecting profit-taking or cautious positioning by investors. Notably, the stock price remains above its 50-day, 100-day, and 200-day moving averages, suggesting a longer-term bullish trend. However, it is trading below its 5-day and 20-day moving averages, indicating short-term weakness and potential consolidation.

This mixed technical picture suggests that while the stock retains underlying strength, near-term momentum has softened, possibly due to profit booking or broader market uncertainties.

Institutional Participation and Liquidity Considerations

Investor participation, as measured by delivery volume, has shown signs of contraction. On 2 Jan 2026, the delivery volume was 16.87 lakh shares, but this figure has declined by 49.73% compared to the five-day average delivery volume. This reduction in delivery volume may indicate a temporary pullback in long-term investor commitment or a shift towards short-term trading strategies.

Liquidity remains robust, with the stock’s traded value representing approximately 2% of its five-day average traded value. This liquidity level supports sizeable trade executions, with a comfortable trade size capacity of ₹17.93 crore, making Infosys a viable option for institutional investors and high-net-worth individuals seeking meaningful exposure.

Mojo Score Upgrade Reflects Positive Outlook

MarketsMOJO has upgraded Infosys Ltd’s Mojo Grade from Hold to Buy as of 22 Dec 2025, reflecting improved confidence in the company’s fundamentals and growth prospects. The stock currently holds a Mojo Score of 70.0, signalling a favourable investment case supported by strong financial metrics and market positioning.

Infosys’s Market Cap Grade is rated 1, indicating its status as a large-cap stock with significant market capitalisation of ₹6,65,229 crore. This scale provides the company with resilience and the ability to attract institutional capital, which is evident in the high-value trading activity observed.

Sector and Market Context

Within the Computers - Software & Consulting sector, Infosys remains a bellwether stock. Despite the recent underperformance relative to its sector (-1.08% difference in daily returns), the company’s long-term fundamentals remain intact. The sector itself has faced headwinds amid global economic uncertainties and evolving technology trends, which have influenced investor sentiment.

Comparatively, Infosys’s 1-day return of -2.79% is sharper than the sector’s -1.83% and the Sensex’s marginal decline, suggesting that the stock is currently more sensitive to market fluctuations. This could present tactical opportunities for investors looking to capitalise on short-term price corrections within a fundamentally strong stock.

Valuation and Investment Considerations

Infosys’s valuation metrics, as reflected in its Mojo Score and recent analyst upgrades, indicate a stock that is attractively positioned for medium to long-term investors. The company’s consistent revenue growth, robust order book, and expanding digital services portfolio underpin its positive outlook.

However, the recent dip and reduced delivery volumes highlight the need for investors to monitor near-term price action closely. The stock’s position above key long-term moving averages provides a technical cushion, but the short-term moving averages suggest caution until momentum stabilises.

Outlook and Strategic Implications

For investors and market participants, Infosys’s high-value trading activity combined with its upgraded Mojo Grade presents a compelling narrative. The stock’s large-cap status and liquidity profile make it a preferred choice for institutional portfolios seeking exposure to India’s technology sector.

Nevertheless, the recent price softness and declining delivery volumes warrant a measured approach. Investors should consider the broader market environment, sector dynamics, and technical signals before initiating or increasing positions.

Given the company’s strong fundamentals and strategic initiatives in digital transformation, Infosys is well placed to benefit from the ongoing technology adoption trends. The current correction may offer a tactical entry point for long-term investors aiming to capitalise on the company’s growth trajectory.

Summary

Infosys Ltd’s trading session on 5 Jan 2026 was marked by significant value turnover of ₹189 crore and robust volumes exceeding 11.7 lakh shares. Despite a 3.35% decline in price, the stock remains technically supported by long-term moving averages and enjoys a positive Mojo Grade upgrade to Buy. Institutional interest remains evident, although delivery volumes have contracted recently. Investors should weigh the short-term volatility against the company’s strong fundamentals and sector leadership when considering investment decisions.

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