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Muted Infosys Guidance Drags IT Stocks as Sensex Sheds 1,000 Points

The muted outlook signals weaker client spending alongside tighter competition.

Overview

  • Infosys, which issued FY27 constant‑currency growth guidance of 1.5% to 3.5% on Thursday, hit multi‑year lows on Friday and pulled the Nifty IT index down about 5%.
  • The cautious range reflected weak demand in European manufacturing, AI‑driven deal scrutiny and pricing pressure, and risks tied to tensions in West Asia.
  • The sell‑off broadened across the market, with the Sensex closing down about 1,000 points as Brent crude topped $107 a barrel and foreign investors sold Indian shares.
  • Infosys reported a strong March‑quarter net profit of Rs 8,501 crore with higher staff utilisation, yet it reduced headcount by more than 8,400 to 328,594 to boost productivity.
  • Brokerages cut price targets and trimmed growth estimates, though some analysts pointed to solid conversion of bookings and said the company’s AI portfolio could support steadier mid‑term growth.