Infosys Ltd Sees High-Value Trading Amidst Declining Momentum and Institutional Caution

Robust Trading Volumes and Value

On 20 Feb 2026, Infosys recorded a total traded volume of 32,49,748 shares, translating into a substantial traded value of ₹4,377.83 crores. This places Infosys among the most actively traded stocks by value on the day, underscoring its continued prominence in market participants’ portfolios. The stock opened at ₹1,359.2 and reached an intraday high of the same level, but it also touched a low of ₹1,338.2, marking a 2.36% dip from the previous close of ₹1,370.5.

Price Performance and Moving Averages

Infosys closed the session at ₹1,351.5, down 1.15% on the day, underperforming its sector by 0.56%. The stock has been on a downward trajectory for three consecutive days, cumulatively losing 2.75% in returns over this period. Technical indicators reveal that Infosys is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish trend and weakening momentum. This sustained weakness in price levels suggests that short-term selling pressure is outweighing buying interest.

Institutional Interest and Delivery Volumes

Investor participation, particularly from institutions, appears to be waning. The delivery volume on 19 Feb 2026 was 61.43 lakh shares, which is a sharp decline of 51.42% compared to the five-day average delivery volume. This drop in delivery volumes indicates reduced conviction among long-term investors, possibly reflecting profit booking or cautious repositioning ahead of upcoming corporate or macroeconomic events.

Dividend Yield and Market Capitalisation

Despite recent price softness, Infosys continues to offer a relatively attractive dividend yield of 3.37% at the current price level, which may appeal to income-focused investors. The company maintains its status as a large-cap heavyweight with a market capitalisation of ₹5,55,328 crores, reinforcing its position as a bellwether in the Indian IT sector.

Liquidity and Trade Size Considerations

Liquidity remains robust, with the stock’s traded value comfortably supporting trade sizes of up to ₹69.71 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional investors can execute sizeable orders without significant market impact, although the recent decline in delivery volumes suggests a more cautious approach to fresh accumulation.

Mojo Score and Rating Update

MarketsMOJO’s proprietary Mojo Score for Infosys currently stands at 57.0, reflecting a Hold rating. This is a downgrade from the previous Buy rating assigned on 9 Feb 2026, signalling a more neutral stance amid the recent price weakness and declining investor participation. The Market Cap Grade remains at 1, indicating the company’s large-cap status but also highlighting limited upside potential in the near term given current market dynamics.

Sector and Benchmark Comparison

Infosys’ 1-day return of -1.39% contrasts with the sector’s decline of -0.63% and the Sensex’s marginal gain of 0.07%, illustrating the stock’s relative underperformance. This divergence may be attributed to sector rotation or profit-taking in IT stocks, as investors seek opportunities in other segments of the market. The underperformance also aligns with the technical signals of weakening momentum and reduced institutional interest.

Outlook and Investor Implications

Given the current trading patterns, investors should approach Infosys with caution. The combination of falling prices, declining delivery volumes, and a downgrade in rating suggests that the stock may face near-term headwinds. However, the attractive dividend yield and large-cap stability provide some defensive qualities. Investors may consider monitoring the stock for signs of a technical reversal or renewed institutional buying before committing fresh capital.

Conclusion

Infosys Ltd remains a key player in the Indian IT sector with substantial trading volumes and market capitalisation. However, recent price declines, underperformance relative to sector and benchmark indices, and a downgrade in rating reflect a period of consolidation and caution. Institutional investors appear to be reducing exposure, as evidenced by falling delivery volumes. While the stock’s dividend yield and liquidity remain attractive, investors should weigh these positives against the prevailing technical and sentiment challenges before making investment decisions.

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