Infosys Shares Experience Worst Monthly Decline in 13 Years Amid Artificial Intelligence Concerns

Infosys Shares Plummet Amid AI Disruption Fears

Market Capitalization Loss: ₹1,33,824 crore Stock Price Loss: 20.34% in February

Infosys, India's second-largest software maker, has seen its shares decline 20.34% in February, marking its worst monthly performance in over a decade. The stock price has dropped to ₹1,308 apiece, erasing billions from its market value. This decline has contributed to a 26.3% drop from the 52-week high of ₹1,775 apiece, placing it among the worst performers in the large-cap space.

Market Capitalization: ₹8.37 lakh crore Notional Loss for Domestic Fund Houses: ₹41,892 crore

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Domestic mutual funds have taken a significant hit due to the decline in Infosys shares. At the end of the December quarter, 45 mutual funds collectively owned a 22.12% stake in Infosys. The 26.3% fall in the Infosys share price from its one-year high has resulted in a notional loss of ₹41,892 crore for domestic fund houses. The value of their holdings has declined to ₹1,17,331 crore from ₹1,59,223 crore.

Foreign Selling Intensifies FPI Investments in IT Stocks: ₹4,48,938 crore as of 15 February 2026

Concerns over Indian IT companies have accelerated foreign selling in the sector. Foreign Portfolio Investors (FPIs) dumped ₹11,000 crore worth of IT stocks in the first half of February, taking their combined investments in IT stocks to ₹4,48,938 crore as of 15 February 2026, the lowest level in four years.

Nifty IT Index Dropped 19.13% in February Indian IT Sector at Risk of Disruption

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The sharp decline in Infosys shares has wiped out investor confidence in the Indian IT sector. The Nifty IT index dropped 19.13% in February, amid concerns that AI tools could disrupt the sector. The Indian IT sector is at risk of disruption, particularly if AI starts to eat into application services revenue, which typically accounts for 40% to 70% of total revenue for these companies.