Infosys share price saw a decline of approximately 1% during intraday trading on BSE, reflecting weak market sentiment, despite the company’s recent announcement of an expansion of its strategic partnership with US chipmaker Nvidia. As part of this partnership, Nvidia will provide Infosys with its artificial intelligence (AI) models, tools, applications, and compute infrastructure. Infosys, in turn, plans to train 50,000 of its employees on Nvidia’s AI stack through a dedicated center of excellence (CoE).
While Infosys has shown significant gains in recent months, its share price has significantly underperformed its sectoral index, BSE IT, and the benchmark Sensex over the past year. While the BSE IT index has risen by about 21% in the past year, Infosys shares have only gained around 8%. However, sentiment appears to be improving for Infosys stock, with strong gains over the past three months, outperforming both BSE IT and the Sensex.
Analysts have varying views on Infosys’ future performance. Some brokerage firms have named Infosys as their top pick among IT services providers, suggesting that it may be better positioned than its mid-cap peers going into FY2025. Kotak Institutional Equities, for instance, expects a recovery in revenue growth for large companies like Infosys, projecting a target price of ₹1,710.
Technical analysts see some signs of fatigue in Infosys’ stock but believe it is a good long-term buy and suggest accumulating it during declines. Support levels for the stock are seen around ₹1,425–1,450, while resistance is near ₹1,500–1,525. The Nifty IT Index recently witnessed a multi-month breakout on the weekly charts, with Infosys experiencing strong growth in the past two months.
Overall, while Infosys has faced challenges over the past year, its recent performance and strategic partnerships have generated positive sentiment among investors and analysts.
