Infosys Falls 5% After Morgan Stanley Downgrades Over Tariff Uncertainty; Check Target Price – News18
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Infosys shares plummeted nearly 5% on March 12, reaching levels not seen since July 2024; Check latest target price
Infosys Share Price Today
Infosys Share Price: Infosys shares plummeted nearly 5% on March 12, reaching levels not seen since July 2024, following downgrades by prominent brokerages due to growing concerns over discretionary spending by US clients.
Morgan Stanley downgraded Infosys from ‘overweight’ to ‘equal-weight,’ citing worries about slowing growth and valuation pressures. The brokerage also cut its price target for the stock to Rs 1,740 from Rs 2,150.
Motilal Oswal Financial Services also downgraded the stock to ‘Neutral,’ pointing to global geopolitical uncertainties and the potential threat of a trade war triggered by U.S. President Donald Trump’s tariffs. The brokerage noted that sentiment has turned cautious, with enterprises adopting a ‘wait-and-watch’ approach.
In addition to Infosys, Motilal Oswal downgraded Wipro to ‘Sell,’ while upgrading Tech Mahindra to ‘Buy.’ It also named LTI Mindtree and TCS as its “preferred picks” due to their favorable risk-reward balance. For mid-cap stocks, Motilal Oswal maintained its preference for Coforge and Persistent, viewing the recent correction as a buying opportunity. The brokerage further downgraded L&T Tech Services to ‘Neutral,’ citing concerns about its valuation.
Indian IT stocks have faced challenges this year, despite a weakening rupee, due to concerns over a potential US economic slowdown and uncertainty around trade policies. The Nifty IT index, one of the worst performers after real estate, has declined by 14% in 2025, marking an unusual weak year for the sector.
North America continues to be a vital market for Infosys, accounting for over 60% of its revenue in FY24. As business sentiment weakens, investors are closely monitoring the broader demand outlook for Indian IT services.
However, not all analysts are pessimistic about the stock. Last week, CLSA upgraded Infosys to ‘accumulate’ from ‘hold,’ setting a 12-month target price of Rs 1,978. According to Trendlyne data, out of 40 analysts tracking the stock, 28 have a ‘buy’ rating, with a consensus target price of Rs 2,097, implying a 26% upside from Tuesday’s close.
Infosys shares have gained 3.81% over the past year but have fallen 11.41% in the last month, including a 1.58% drop in the past week.
The sharp drop in Infosys’ share price was the primary contributor to the decline of the Nifty IT index, which fell by over 3% on March 12. Other IT stocks also saw significant losses, with Wipro falling more than 5% to ₹263 per share, while HCL Tech, LTI Mindtree, and Persistent all dropped by over 3%.
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