Infosys promoter Shruti Shibulal buys shares worth ₹494 crore amid IT stocks slump

Shruti Shibulal, daughter of Infosys co-founder and former CEO SD Shibulal, purchased 29.84 lakh shares of the IT major for ₹494 crore in an open market transaction on Tuesday. According to block deal data from the NSE, the shares were acquired at an average price of ₹1,657 apiece.Interestingly, the shares were offloaded by Gaurav Manchanda, a family member of SD Shibulal, at the same price and volume. The transaction, however, did little to support Infosys’ stock price, which ended 2.02% lower at ₹1,667 on the NSE, PTI reported.

IT stocks under pressure as US slowdown looms
The broader Nifty IT index extended its losing streak for the fourth consecutive session, tumbling 2% to emerge as the worst-performing sector. Nine out of ten index constituents were in the red, with losses ranging from 1% to 4%. Infosys was one of the biggest laggards, while TCS and Wipro also slipped. Midcap IT stocks, including Mphasis, Coforge, and L&T Technology Services, were down nearly 1% each.
The Indian IT sector is under pressure amid concerns over a potential US recession and uncertain trade policies. On March 10, the Dow Jones plummeted nearly 900 points, marking its biggest single-day drop of the year. The sharp decline reflects weakening business and consumer confidence, further dampening sentiment around India’s export-driven IT industry.Brokerages turn cautious on Infosys

Morgan Stanley downgraded Infosys to ‘equal-weight’ from ‘overweight’, ending a four-year bullish stance on the stock. The brokerage slashed its target price to ₹1,740 from ₹2,150, citing slowing growth and stretched valuations, signalling a 19% downside.

“We see downside risks emerging for both revenue growth of Indian IT services and valuation multiples,” wrote Morgan Stanley analyst Gaurav Rateria in an investor note. Infosys’ US-listed shares also reacted negatively, slipping in pre-market trading after falling 2.1% in the previous session.

While tier-one IT firms were on a recovery path, growth expectations have been pushed back due to renewed concerns about the US economy, said Siddhartha Khemka of Motilal Oswal. However, mid-tier IT firms are expected to fare better, given their niche focus and stronger deal pipelines.

(With PTI Inputs)