- Infosys fell 1.66% to Rs 1,654.80, breaking a brief intraday rally.
- Quarterly revenue rose 9% YoY, but net profit slipped 2% – a rare profit‑margin squeeze.
- Sector peers (TCS, Wipro) posted steadier margins, raising questions about Infosys’s cost structure.
- Historical dips in Infosys often preceded multi‑month rallies when earnings momentum returned.
- Technical charts show the stock flirting with its 50‑day moving average, a classic trigger point for swing traders.
You saw the 1.7% slide and thought it was just another market wobble. That assumption could cost you a premium entry point.
Infosys Stock Movement on Jan 29, 2026
At 2:30 pm IST the shares traded at Rs 1,654.80, down 1.66% from the prior close. The day's high hit Rs 1,688.80, a modest 0.36% rise, while the low settled at Rs 1,650.00, marking a 1.94% dip from the previous close. As a heavyweight in the Nifty 50, any move reverberates across the index, especially in the IT services slice that accounts for roughly 12% of the basket.
What the Quarterly Numbers Reveal About Infosys’s Growth Trajectory
The December‑2025 quarter delivered Rs 45,479 crore in revenue, a 9% YoY increase from Rs 41,764 crore. Yet net profit fell to Rs 6,666 crore from Rs 6,822 crore, dragging EPS down to Rs 16.17 from Rs 16.43. The profit decline stemmed primarily from higher staffing costs and a modest slowdown in high‑margin digital transformation contracts.
Annual figures paint a slightly brighter picture: FY 2025 revenue reached Rs 162,990 crore, up 6% YoY, and net profit climbed to Rs 26,750 crore, a 1.9% rise. EPS improved to Rs 64.50 versus Rs 63.39 a year earlier. The contrast between robust top‑line growth and throttled bottom‑line expansion signals a margin compression risk that investors must monitor.
Sector‑wide Implications: Indian IT Services Landscape
India’s IT export market is projected to grow at a compound annual growth rate (CAGR) of 6‑7% through 2028, driven by cloud migration, AI adoption, and near‑shore demand from the U.S. and Europe. However, the sector faces a talent shortage and rising wage inflation, factors that have already eroded margins for many players.
Infosys’s cost pressures echo a broader industry trend where firms are investing heavily in up‑skilling and reskilling programs – a necessary expense but one that can dent short‑term earnings. The key question: can Infosys translate its revenue momentum into sustainable profit growth faster than its peers?
Competitor Lens: How TCS, Wipro, and HCL Are Positioning
TCS reported a 7% YoY profit rise in the same quarter, buoyed by stronger cloud services and a healthier mix of high‑margin consulting work. Wipro’s margin rebounded after a strategic divestiture of legacy legacy hardware assets, while HCL leveraged its AI‑driven automation platform to win several large European contracts.
Compared to these peers, Infosys’s net‑profit dip appears more pronounced, suggesting that its recent strategic partnership with Cursor – a software‑engineering acceleration platform – may still be in the early integration phase. Investors should watch whether this collaboration starts delivering the expected productivity gains within the next two quarters.
Historical Patterns: Past Dips and Subsequent Rallies
Looking back, Infosys experienced a 2.3% pullback in August 2022 after a quarterly earnings beat but before a 12% rally in the following month. Similarly, a 1.9% dip in February 2020 was quickly reversed when the company announced a major cloud‑services win.
The pattern suggests that short‑term price softness often precedes a longer‑term upside, especially when the dip coincides with a solid revenue trajectory. However, each cycle is context‑dependent; the current margin squeeze adds a layer of uncertainty not present in earlier rebounds.
Technical Signals & Valuation Metrics to Watch
On the chart, the stock is testing its 50‑day moving average (≈Rs 1,660). A break below this level could trigger algorithmic sell‑offs, while a bounce would indicate resilient demand. The Relative Strength Index (RSI) sits at 44, edging out of oversold territory, hinting at modest upside potential.
Valuation-wise, Infosys trades at a forward P/E of ~22×, compared to the sector average of 20×. The price‑to‑book (P/B) ratio remains around 5.5, reflecting premium valuation justified by brand strength and recurring revenue streams. Any sustained profit compression could pressure these multiples.
Investor Playbook: Bull vs Bear Scenarios
Bull case: If the Cursor partnership accelerates delivery timelines, margin recovery could follow within six months. Coupled with continued revenue growth, the stock may retest the Rs 1,700 resistance, delivering a 4‑6% upside for patient investors.
Bear case: Persistent cost inflation and slower digital‑services uptake could widen the profit gap versus peers. A breach of the 50‑day moving average and a retreat below Rs 1,620 may open the door to a deeper correction, potentially testing the Rs 1,550 support.
For swing traders, a tight stop‑loss at Rs 1,620 combined with a target near Rs 1,700 offers a risk‑reward ratio of roughly 1:2. Long‑term holders might consider adding on dips, provided the company demonstrates margin improvement in the next earnings release.