IT Pack Slides In Intraday After Infosys Flags Slower Growth

IT stocks extended losses in Friday’s intraday trade, after Infosys issued a weaker-than-expected growth outlook for FY27. Infosys shares took a hit of 5% after the announcement on the National Stock Exchange (NSE).

Other frontline IT stocks also came under pressure. HCL Technologies and TCS declined around 3% each. At 1:02 pm, Infosys shares were down 6.11%, while HCL Technologies and TCS shares were down by 5.79% and 4.91%, respectively, on the NSE.

At 1:06 pm, the Nifty IT index was down 5.27%, while the Nifty 50 was down 1.22% during the same time.

Guidance Weighs On Sentiment

The sell-off followed Infosys’ revenue guidance for FY27. The company expects growth of 1.5% to 3.5% in constant currency terms. This is lower than the 3% to 3.5% outlook it had indicated earlier, as per company disclosures. The guidance appeared to dampen investor sentiment despite a strong set of quarterly numbers.

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Earnings Show Growth

Infosys announced a 20.9% year-on-year (YoY) growth in net profit to ₹8,501 crore. Revenue rose 13.4% to ₹46,402 crore compared to the same period last year. The earnings growth did little to offset concerns around the near-term demand outlook reflected in the guidance.

IT stocks have already seen sustained selling pressure in 2026. Since the start of the calendar year, shares of Infosys, TCS and HCL Technologies have declined around 25%. The latest fall adds to the ongoing weakness in the sector.

Sources:

Business Standard

Nifty Indices

Moneycontrol