Infosys shares down 5% to eight-month low on downgrades over tariff uncertainty

The shares of IT major Infosys crashed nearly 5 percent on March 12 to levels last seen in July 2024, eight months ago, following downgrades by key brokerages owing to uncertainty regarding discretionary spending by US clients.

Motilal Oswal on Infosys

Motilal Oswal Financial Services downgraded the stock to 'Neutral' and said that global geopolitical uncertainties coupled with the threat of possible trade war triggered by US President Donald Trump's tariffs are weighing on the stability of the IT sector. "Sentiment has turned cautious, with enterprises taking a 'wait-and-watch' stance," Motilal Oswal said.

Motilal Oswal Financial Services also downgraded Wipro to 'Sell', while upgrading TechM to 'Buy'. The brokerage called LTI Mindtree and TCS as its "preferred picks" for their risk-reward balance. In the mid-cap category, the brokerage retained its preference for Coforge and Persistent, and saw the recent correction as an opportunity to buy. It further downgrade L&T Tech Services to 'Neutral', citing "valuation discomfort".