Infosys Ltd.'s share price hit a three-month low in Monday's session, extending losses to a third session. The stock is the third top loser on the NSE Nifty 50 and NSE Nifty IT indices.
The overall sentiment for the IT stocks turned cautious after Tata Consultancy Services Ltd. announced its decision to reduce workforce by 2% in the financial year 2026.
According to Investec, trimming 12,000 jobs is a non-material event as such moves are not unprecedented in the industry. While Citi Research sounded cautious as it deemed the job cuts is the effect of redeployment failure.
Most IT stocks were trading with losses on Monday. The NSE Nifty IT was the fifth worst performing sectoral index.
Infosys share price declined 2.19% to Rs 1,482.5 apiece, the lowest level since April 29. It was trading 0.58% down at Rs 1,506.8 apiece as of 11:50 a.m., as compared to 0.15% decline in the NSE Nifty 50 index.
The stock declined 19.42% in 12 months, and 19.79% on year-to-date basis. Total traded volume on National Stock Exchange so far in the day stood at 0.43 times its 30-day average. The relative strength index was at 31.13.
Out of 49 analysts tracking the company, 34 maintain a 'buy' rating, 13 recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.6%.
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