Infosys Share Price Falls; Shruti Shibulal Buys 29.84 Lakh Shares Amid Turmoil

On Wednesday, March 12, 2025, the Indian IT sector witnessed a sharp decline, with the Nifty IT index plummeting over 3% as fears of a potential US recession rattled investor sentiment. The decline has now pushed the index into bear market territory, having plunged 22% from its 52-week high of 46,088.90, recorded in December 2024.

A bear market is typically defined as a fall of 20% or more from a recent peak, and the Nifty IT index has now crossed this threshold, reflecting the mounting uncertainty around IT companies’ future growth prospects.

Infosys Share Price Steepest Single-Day Fall 

Among the major IT firms, Infosys bore the brunt of the sell-off, with its share price tumbling 4.70% as of 2:25 PM—marking its steepest single-day decline since January 17, 2025.

The sharp drop in Infosys and other IT stocks is primarily driven by concerns about a potential economic slowdown in the US, which remains the largest revenue-generating market for Indian IT companies. Any downturn in the US economy could significantly impact the sector’s earnings, leading to weaker deal wins and lower growth forecasts.

Outlook on Infosys Weighs on Sentiment

Investor sentiment was further dampened amid concerns about Infosys’ growth prospects, as per news reports. According to news reports, the company’s deal wins in FY25 are expected to be weaker than the previous fiscal year, raising doubts about its near-term revenue trajectory.

As a result, market participants are closely watching Infosys and other IT giants, given their high exposure to global economic conditions and dependence on overseas contracts.

Insider Buying Amid Market Volatility

Despite the prevailing uncertainty and sharp correction in stock prices, Shruti Shibulal, daughter of Infosys co-founder SD Shibulal, purchased 29.84 lakh shares of Infosys through an open market transaction worth ₹494 crore on Tuesday.

As per NSE block deal data, the shares were acquired at an average price of ₹1,657 per share. The large insider purchase has caught the market’s attention, as such transactions often indicate long-term confidence in the company’s fundamentals despite short-term volatility.

Conclusion

The IT sector continues to face macroeconomic headwinds, with concerns over a potential US recession impacting investor sentiment. While the market grapples with weaker deal flows and a bearish trend, insider buying in Infosys has provided a contrasting perspective on long-term prospects. The sector’s performance will likely hinge on global economic trends and corporate earnings updates in the coming months.

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