Why Infosys share price is falling today?

Infosys is seeing a drop in its share price today, despite solid recent results. The company shares fell around 2% or more in early trade, dragging the broader IT index. 

Here are the main reasons for the sell-off:

1. Global macro & US interest rate worries

The broader trigger is weaker global cues: U.S. markets are under pressure, and comments from the Federal Reserve (Fed) suggest rate-cuts may be delayed or less aggressive. That hurts IT stocks with large export exposure. 

Infosys draws a major portion of revenue from North America/Europe, so any slowdown in client spending or delayed projects weighs on investor sentiment.

2. Sectoral weakness in Indian IT

On the domestic bourses, the IT sector (via the Nifty IT Index) is underperforming. The IT index has slid more than 1% today. Infosys is among the top losers in that segment. 

Broad risk-aversion, especially in export-oriented tech companies, is compounding the pressure.

3. Guidance remains modest

Although Infosys reported a good quarter, the future growth guidance is conservative. For Q2 FY26, revenues rose ~8.6% YoY and net profit ~13.2% YoY. 

However, management’s FY26 revenue growth outlook in constant currency was raised only to about 2–3%, which may have disappointed investors expecting a higher growth trajectory. 

In short: results are good, but they don’t reflect a dramatic acceleration — and that gets penalised in the market.

4. Technical/market-mood factors

According to market commentary, Infosys hit a day‐low near ₹1,496 on intraday trade, reflecting significant price pressure. 

Momentum matters, and when a large weight stock slides, it drags sector indices and sentiment further.

In combination, these factors explain why despite strong recent numbers, Infosys is under pressure: global rate fears + sector weakness + modest forward guidance = weak investor appetite.

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Future outlook for Infosys

What about the medium-to-long term for Infosys?

Positives

The company continues to win large deals and has a robust deal pipeline. For Q2, it reported strong bookings and maintained margins. 

Share-holder friendly moves: Infosys announced a large share buyback of ~₹18,000 crore. 

The global shift to digital, cloud, AI and automation remains structural tailwind for Indian IT players.

Risks/Headwinds

Growth in end markets (US, Europe) is under pressure: delayed digital transformation spend, macro risks and currency headwinds may slow the ramp-up. 

With guidance being modest, investors may demand strong execution or new growth engines (for example, product business vs services) to re-rate the stock.

Competition, talent costs and margin pressures remain key variables.

Views

In my view, Infosys is likely in a consolidation phase: good company, solid fundamentals, but with near‐term growth visibility constrained. If macro tailwinds return (e.g., renewed US spending, currency tailwind) or the company launches an accelerated growth initiative (e.g., major acquisition, large product business), the stock could rally. Until then, expect sideways to mild appreciation, with periodic weakness if sentiment turns. For long-term investors it looks reasonable; for short-term traders the risk of further dips remains.

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FAQs

1. Why is Infosys Ltd share price falling today?

Because of global rate-cut concerns, weak IT sector sentiment and modest growth guidance by the company.

2. What were Infosys Q2 earnings (FY26)?

Net profit was ~₹7,364 crore (+13.2% YoY), revenue +8.6% YoY). 

3. What is Infosys FY26 growth guidance?

The company raised the lower end of growth guidance to ~2–3% in constant currency terms. 

4. How does global macro impact Infosys stock?

A large portion of its revenue comes from exports; hence US/Europe slowdowns, weak demand or high interest rates affect its business outlook.

5. What are the positives for Infosys stock?

Strong deal wins, stable margins, large buyback programme, structural growth tailwinds in digital services.

6. What are the risks facing Infosys?

Slow growth in client markets, inability to accelerate beyond modest guidance, margin pressures, currency fluctuations.

7. How does Infosys compare to other Indian IT stocks?

Infosys is among the large-cap Indian IT services firms; like others, it is sensitive to global IT spending trends. Today, IT majors are under pressure. 

8. Is the current fall in Infosys stock an opportunity?

It could be a buying opportunity for long-term investors given the fundamentals, but only if one is comfortable with near‐term uncertainty and the possibility of further dips.

9. What should investors watch in upcoming quarters?

Key triggers: growth acceleration (above guidance), margin expansion, deal pipeline conversion, currency/geo-client trends, update on any new business model or product push.

10. Should I buy, sell or hold Infosys today?

That depends on your time-horizon and risk-appetite. For long-term investors, “hold” or selective “buy on dips” may make sense. For short-term traders, caution is warranted given the sector-and-macro headwinds.