Why Is Infosys Share Price Falling? Reasons Behind the 52 Week Low
- May 14, 2026
- Posted by: Ankit Jaiswal
- Category: Market
Infosys share price hit Rs 1,123 on 12 May 2026, its lowest level in over a year, as a broad sell-off swept through Indian IT stocks. India’s second-largest technology services company has shed nearly 35% from its 52 week high of Rs 1,728 under the weight of AI disruption concerns, a cautious FY27 revenue outlook, and sustained institutional outflows. This article breaks down the specific drivers behind the Infosys share price decline and outlines the conditions needed for a recovery.
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Infosys Share Price: Stock at a Glance
| NSE Symbol | INFY |
| Sector | IT Services & Consulting |
| CMP | Rs 1,150 |
| 52 Week High | Rs 1,728 |
| 52 Week Low | Rs 1,123 |
| Market Cap | Rs 4,62,000 Cr |
| FY27 CC Guidance | 1.5% to 3.5% |
| 1Y Decline | 30% |
Infosys is a Bengaluru-headquartered global IT services company founded in 1981, serving clients across financial services, retail, manufacturing, energy, and communications. It is one of India’s most widely held stocks by foreign and domestic institutions alike. Movements in Infosys share price are closely watched as a proxy for the health of the Indian IT sector and FII sentiment toward Indian equities broadly.
Key Reasons Behind the Fall in Infosys Share Price
1. OpenAI’s Enterprise AI Launch Sparks Structural Concern
On 12 May 2026, OpenAI announced a new enterprise-focused AI deployment company designed to help organisations integrate AI directly into operations. Investors immediately drew a connection to the traditional IT outsourcing model and began reducing exposure. Infosys share price fell 3.09% on the day alone and closed at Rs 1,140. The concern is not purely cyclical: if AI-native firms can displace labour-intensive IT service delivery, Infosys’s long-term revenue model faces structural questions.
2. Conservative FY27 Revenue Guidance
Infosys share price has also been dragged lower by management guiding for FY27 constant currency revenue growth of only 1.5 to 3.5%, after organic growth of 2.4% CC in FY26. The guidance reflects ongoing weakness in discretionary technology spending across Retail, Manufacturing, and Communications verticals. ICICI Securities and Axis Securities maintained Hold ratings post-guidance, with a target price of Rs 1,330.
3. FII Outflows and Weak Technical Structure
Persistent FII selling in Indian IT stocks through 2025 and into 2026 has kept Infosys share price below its 50-week and 200-week exponential moving averages. RSI has slipped near oversold territory, indicating selling exhaustion may be building, but a confirmed reversal is yet to form. A decisive close above Rs 1,185 is the first level analysts are watching as a sign of stabilisation.
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What Could Drive a Recovery?
A pick-up in large deal ramp-ups, improved global client spending on discretionary tech, and a credible AI delivery strategy are the three catalysts that could turn Infosys share price around. Prabhudas Lilladhar has a Buy with a target of Rs 1,570, Deven Choksey targets Rs 1,497, and Kotak has a Buy at Rs 1,440. These targets suggest meaningful upside potential if the macro and sector headwinds ease.
Conclusion
Infosys share price is at a multi-year low driven by AI disruption fears, conservative FY27 guidance, and sustained institutional selling. The company has a strong deal pipeline, healthy cash reserves, and growing AI service capabilities, but near-term earnings visibility is limited. Investors should monitor large deal announcements and Q1 FY27 results as the next major data points. Consult a SEBI-registered financial advisor before making any investment decisions.
Investments in securities are subject to market risk. This content is for educational purposes only and does not constitute investment advice.
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FAQs
What is the 52 week low of Infosys share price?
The 52 week low of Infosys share price is Rs 1,123 on NSE, touched on 12 May 2026. The 52 week high stands at Rs 1,728.
Why did Infosys share price fall sharply on 12 May 2026?
The immediate trigger was OpenAI’s announcement of an enterprise AI company, which raised fears of structural disruption to traditional IT outsourcing. This was compounded by Infosys’s conservative FY27 guidance and persistent FII selling in the Indian IT sector.
What are analyst targets for Infosys share price in 2026?
Targets range from Rs 1,330 (ICICI Securities, Hold) to Rs 1,570 (Prabhudas Lilladhar, Buy). These are estimates and not guaranteed returns. Consult a SEBI-registered advisor before investing.
