Large Cap IT Software Stock Hits 52-Week Low Today, Time To Invest?

Shares of Infosys have been witnessing a decline and hit a 52-week low in trade on Thursday. The current market price of the stock is Rs 1371 with an intraday fall of 0.38%. The stock opened at Rs 1376 apiece, touched intraday high of Rs 1383 and intraday low of Rs 1360. The stock's 52-week high is Rs 1953 apiece and 52-week low is Rs 1360 apiece, respectively.

The stock of Infosys Ltd has plunged by 20% in just a span of 1 year, 27% in last 6 months, 5% in the last 3 months, and 13% in the last 30 days. Infosys Ltd is a large cap stock and operates in the IT Software sector. The IT industry in India remains worst affected this year as a result of several factors.

Analysts say that Indian IT stock may not be preferred by investors amid rising worries over recession in the US and Europe that could dent companies' earnings.

Analysts anticipate that there is possibility of further decline and it may bring companies' profit margins under pressure over the next few quarters.

Earlier, US Federal Reserve Chairperson Jerome Powell has already made his intentions clear that the top priority of central bank is to tame rising inflation even if higher interest rates cause lower economic growth. Investors are apprehensive that a slowing economy may lead to lower technology spending in the US and Europe which may consequently impact IT sector.

The Federal Open Market Committee (FOMC) meeting of the US Federal Reserve on September 20 declared a 75-bps interest rate hike as per expectations. In the earlier monetary policy announcement, the Central Bank had increased the rates by 75 bps while maintaining that it sought to contain inflation at 2%.

Meanwhile, Infosys for the quarter ended declared a consolidated total income of Rs 35,146 crore, up 6.78% from last quarter total income of Rs 32,913 crore. Infosys declared a net profit after tax at Rs 5,362.00 crore in latest quarter.

Leading brokerages have also rated Infosys stock in their recent reports.
According to Axis Securities' 1-week back report, investors can buy the stock for a target price of Rs 1750 apiece. Meanwhile HDFC Securities has given buy rating to Infosys for a target price of Rs 1800 apiece in its 1-week back report.

Infosys has a market capitalisation of Rs 5,78,566.10 crore at the time of writing the story. It was founded in 1981. It is a global leader in next-generation digital services and consulting. It enables clients in more than 50 countries to navigate their digital transformation.