Infosys Shares Fall 2% as CLSA Warns of Weak Q3 Earnings Nifty IT Index Drops 1.6%

Infosys shares declined around 2 percent in Monday’s trade after global brokerage CLSA issued a cautious note on the Indian IT sector ahead of the Q3 earnings season. The brokerage advised investors to remain careful, citing expectations of soft earnings, which triggered selling pressure in frontline IT stocks. Infosys is currently trading at Rs, 1601.70 against the previous close of 1,640.70

The weakness in Infosys weighed on the broader IT pack, pushing the Nifty IT index down more than 1.6 percent, making it the worst-performing sector of the day. Market sentiment remained weak across IT counters as investors turned cautious ahead of earnings and amid rising global competition. From a technical perspective, Infosys has taken support at its 20-day simple moving average (SMA) near ₹1,623 on the daily chart and managed to close above this level. Although the stock continues to underperform benchmark indices, the MACD indicator remains positive, suggesting potential upside momentum.

Based on these technical signals, traders may consider holding Infosys at current levels with a strict stop loss at ₹1,610. The stock could attempt an upward move towards the ₹1,700–₹1,730 zone over the coming weeks to months. Other major IT stocks also witnessed sharp declines. HCLTech slipped close to 2 percent, while TCS, Tech Mahindra and Persistent Systems were under pressure, falling up to 2 percent. Wipro shares declined more than 2 percent, adding to the sector-wide weakness. Only LTIMindtree managed to buck the trend, trading marginally higher.Apart from the CLSA note, concerns over India’s position in the global artificial intelligence race also weighed on sentiment. Recent AI-related announcements from Japan and other Asian countries have raised fears that Indian IT companies may be falling behind in advanced AI capabilities, further pressuring the sector.