Infosys Opening Bell Updates: Q1 Miss and Analyst Downgrades Weigh

Infosys (NSE: INFY) closed Monday's session at ₹1,139.90, marking a decline of 1.83% from its previous close. Early indications suggest a muted opening for the stock today, tracking broader market sentiment. The IT bellwether faces cautious sentiment following yesterday's weak performance, which saw its shares dip roughly 2% and trade below its 20-day Exponential Moving Average. This pre-open weakness aligns with the broader Indian IT sector, which continues to grapple with evolving global demand and technological shifts.

Overnight & Global Cues
Global markets offered a mixed-to-negative picture overnight. US stocks closed lower on Monday, August 17, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all slipping. This subdued mood was largely influenced by a surge in crude oil prices, which jumped above $90 a barrel as the Iran ceasefire was set to expire, raising inflation concerns. Investors also remain watchful ahead of key retail earnings and the Federal Open Market Committee (FOMC) minutes scheduled for release later in the week. In Asia, markets are trading mostly lower this morning, though South Korean chip stocks provided some buoyancy. Domestically, the GIFT Nifty is signaling a negative start for Indian equities. Institutional flows on Monday saw Foreign Institutional Investors (FIIs) as net sellers in the cash market, offloading ₹2,535.10 crore. However, Domestic Institutional Investors (DIIs) provided strong counter-support with net purchases of ₹5,101.46 crore. The Indian IT sector continues to navigate a challenging landscape, with the Nifty IT index experiencing an 18% drop in 2026 amid AI-driven disruption and headcount adjustments. However, reports suggest a potential recovery for the industry from 2026 onwards, fueled by increasing demand for AI services, with AI deals accounting for a significant portion of new contracts.

Recent Developments
Infosys recently reported its Q1 FY27 results on July 23, 2026, which saw revenue from operations grow 14.03% year-on-year to ₹48,211 crore and Profit After Tax (PAT) increase 12.29% to ₹7,775 crore. Despite healthy large deal wins of $3.6 billion and AI-led services contributing 8.2% to total revenue, both earnings and revenues fell short of analyst expectations. Consequently, the company narrowed the upper end of its FY27 constant currency revenue growth guidance to 3% from 3.5%, marking the second consecutive guidance cut. This led to a cautious response from brokerages, with JPMorgan downgrading Infosys to 'Neutral' with a target price of ₹1,050, citing weak demand and AI-led pricing deflation. HSBC also moved its rating to 'Hold' from 'Buy', revising its target price to ₹1,110. Conversely, CLSA maintained its 'Outperform' rating with a target of ₹1,109. No significant fresh corporate announcements were observed in the past 48 hours for Infosys beyond investor conference notices.

Key Levels to Watch
For today's session, Infosys opened at ₹1,124.50, against a previous close of ₹1,139.90. The stock's 52-week high stands at ₹1,728, while its 52-week low is ₹982. Given the recent selling pressure, the stock's trading below its 20-day Exponential Moving Average (EMA) indicates short-term weakness. The analyst target prices from JPMorgan (₹1,050) and HSBC (₹1,110) also suggest potential downside or consolidation around these levels. Traders should observe how the stock reacts around these levels, particularly if the broader market weakness persists.

Opening Outlook
As the market opens, Infosys is likely to face continued pressure stemming from the negative global cues, particularly the dip in US markets and rising crude prices. The sustained FII selling combined with the recent guidance cut and analyst downgrades post-Q1 results will keep the stock under scrutiny. While DII buying offers some domestic cushion, the overarching sentiment for the IT sector remains mixed, balancing AI-driven opportunities against near-term demand uncertainties and pricing pressures. Traders should watch for early signs of stabilization or further selling, with volume confirming any directional moves. The focus will be on the company's ability to convert its healthy deal pipeline into revenue growth in a challenging environment.

Disclaimer: The information provided in this article is based on news reports and is not intended as investment advice. Investing in stocks involves risk. LatestLY advises its readers to consult with a financial advisor before making any investment decisions.

(The above story first appeared on LatestLY on Aug 18, 2026 09:38 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).