Infosys Share Price Logs Worst Month in Over a Decade as AI Fears Rattle IT Stocks

Infosys share price is on course to record its steepest monthly decline in more than 10 years, as mounting concerns over artificial intelligence disruption trigger heavy selling across India’s IT sector. The sharp correction has erased ₹1,33,824 crore from Infosys’ market capitalisation, from a peak valuation of ₹8.37 lakh crore.

Infosys Share Price Performance 

Shares of Infosys Limited, the country’s second-largest software exporter, have fallen 20.34% in February to ₹1,308 apiece. This marks the stock’s worst monthly performance since April 2013, when it plunged 22.75%. The stock is now down 26.3% from its 52-week high of ₹1,775, making it one of the weakest large-cap performers this month.

Mutual Funds and FPIs Feel the Heat

Domestic mutual funds have taken a sizeable hit from the slump. As of the December quarter, 45 mutual funds collectively held a 22.12% stake in Infosys. The 26.3% drop from the stock’s one-year high has translated into a notional loss of ₹41,892 crore for fund houses. The value of their holdings has declined to ₹1,17,331 crore from ₹1,59,223 crore.

Foreign portfolio investors (FPIs), who own 30.3% of the company, have also intensified selling. In the first half of February alone, FPIs offloaded ₹11,000 crore worth of IT stocks, dragging their overall exposure in the sector to a four-year low.

IT Index Plummets Nearly 20% in February 2026 

The broader IT index has mirrored Infosys’ decline. The NIFTY IT has dropped 19.13% this month and at one point crashed 21.45%, hitting its lowest level since November 2023.

Investor anxiety has surged following the rollout of advanced AI tools by global startups such as Anthropic, raising concerns that automation could erode application services revenues, which account for 40%–70% of Indian IT companies’ earnings.

Conclusion

With AI disruption fears, brokerage downgrades and sustained foreign selling weighing on sentiment, the infosys share price remains under pressure. Whether this marks a structural shift or a cyclical correction will likely depend on how swiftly Indian IT majors adapt to the evolving AI landscape.

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