As the information technology sector ( IT SECTOR ) continues to shape the global economy, IT companies have emerged as major players in the stock market. One such prominent player is Infosys ( LTP 1254), a global leader in information technology and consulting services. With its strong presence in the NIFTY IT index, Infosys has become a key contributor to the growth and performance of the technology sector. Infosys is the one of the major heavy weight in Nifty IT index and was founded in 1981 by Narayana Murthy and six other entrepreneurs with a vision to provide software development and IT consulting services. Infosys has a weightage of 26.54 percent age in Nifty IT index . Over the years, the company has grown from a small start-up to a global powerhouse, with operations in over 46 countries and serving clients across various industries, including finance, healthcare, manufacturing, retail, and more.
Indian IT index being the worst performing sector is again heading for a bearish momentum as IT stocks are not able to post better Q4 results as expected by the investors. India’s IT sector also known as the NIFTY IT INDEX has long been considered a major player in the global technology landscape, with its outsourcing services and software development capabilities earning worldwide recognition. Nifty IT index is trading at a value of 26905 as on 17th April 2023 . However, in recent years, the sector has been grappling with underperformance, raising concerns about its future prospects.
Infosys being of the major heavyweight of Indian IT index was down 13% intraday as on 17th April 2023 as the company was not able to publish better results as per the street estimates. Infosys has hit a day low of 1185.30 and was consolidating throughout the day. Infosys has been consolidating near the important support level of 1230 -1245 zone. Breaking the support can continue the selloff in the stock causing more weakness in the IT sector. Infosys has a market capitalization of INR of 5.79 trillion. Infosys in year 2022 has started trading with value of 1887 and ended the year 2022 with a value of 1508 resulting to a net de growth of 20.11 percentage in year 2022.The stock price as of 17th April 2023 is of 1245 resulting to a negative growth of 34% from the post covid19 high till the date. The company has been able to maintain its strong performance due to its focus on digital transformation and innovation but was not able to generate good returns to investors.
Reason Behind huge fall in Infosys and other IT stocks
- Recession and Fear of economic slowdown
- Rising bond yields
- Global supply chain disruption
- Rising competition in IT sector
- Government regulations
