Trading Activity and Price Movement
On 21 Jan 2026, Infosys Ltd (INFY) opened at ₹1,651.0 and traded within a range of ₹1,637.9 to ₹1,657.0 before settling near ₹1,640.3 as of 09:44 IST. The stock's previous close stood at ₹1,658.9, marking a modest decline of 1.14% over the day. This performance was slightly weaker than the sector's 1.00% fall and notably below the Sensex's marginal 0.16% dip, signalling sector-specific headwinds impacting the software and consulting space.
Infosys has been on a downward trajectory for three consecutive sessions, cumulatively losing 2.76% in returns. This trend suggests some profit-booking or cautious positioning by investors after recent gains. However, the stock remains above its key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating that the medium to long-term technical outlook remains intact despite short-term weakness.
Institutional Interest and Liquidity
Institutional participation appears to be waning, with delivery volumes on 20 Jan falling by 34% to 36.02 lakh shares compared to the five-day average. This decline in investor participation could be a factor behind the recent price softness, as lower delivery volumes often reflect reduced conviction among long-term holders.
Nevertheless, liquidity remains robust. Based on 2% of the five-day average traded value, Infosys can comfortably support trade sizes up to ₹32.07 crore without significant market impact. This liquidity profile is attractive for institutional investors and large traders seeking to enter or exit positions efficiently.
Fundamental and Market Positioning
Infosys Ltd is a large-cap company with a market capitalisation of approximately ₹6,72,143 crore, underscoring its dominant position in the Indian IT services sector. The company operates within the Computers - Software & Consulting industry, a sector that continues to benefit from digital transformation trends globally.
MarketsMOJO has recently upgraded Infosys from a 'Hold' to a 'Buy' rating as of 22 Dec 2025, reflecting improved confidence in the company’s growth prospects and valuation. The Mojo Score stands at a healthy 70.0, reinforcing the positive outlook. The Market Cap Grade is rated 1, indicating top-tier market capitalisation status among its peers.
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Comparative Performance and Sector Context
While Infosys's one-day return of -1.14% slightly underperformed the sector's -1.00% and the Sensex's -0.16%, it is important to note that the stock's resilience above all major moving averages suggests underlying strength. The sector itself is navigating a period of volatility, influenced by global macroeconomic factors and evolving client spending patterns.
Infosys’s ability to maintain liquidity and institutional interest, despite recent declines, positions it favourably relative to smaller or mid-cap peers that may face sharper swings or lower trading volumes. The company’s large-cap status and strong fundamentals provide a cushion against sectoral headwinds.
Order Flow and Investor Sentiment
High-value trading activity, with a total traded value of ₹172.19 crore on the day, indicates sustained investor interest. However, the decline in delivery volumes suggests that some investors may be shifting to shorter-term trading strategies or awaiting clearer directional cues before committing further capital.
Market participants should monitor upcoming quarterly results and management commentary closely, as these will be critical in shaping near-term sentiment. Additionally, any changes in global IT spending trends or currency fluctuations could materially impact Infosys’s earnings outlook and stock performance.
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Outlook and Investor Considerations
Given the recent downgrade in short-term price action but sustained technical support, investors should weigh the current dip as a potential buying opportunity within a fundamentally sound large-cap IT stock. The upgrade by MarketsMOJO to a 'Buy' rating reinforces this view, suggesting that the stock may be poised for recovery once broader market uncertainties abate.
However, caution is warranted due to the falling investor participation and consecutive days of decline. Active traders may look for confirmation of a trend reversal before increasing exposure, while long-term investors might consider incremental accumulation at current levels.
Overall, Infosys Ltd remains a key bellwether in the Indian IT sector, with its high liquidity, strong market capitalisation, and positive mojo score making it a preferred choice for institutional and retail investors alike.
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