Infosys shares hit a six-year low, market cap below ₹5 lakh crore; why:IT giant Infosys' shares saw sharp pressure on Tuesday. The company's stock fell nearly 3% in intraday trading on the BSE, reaching ₹1,215.15. This is its lowest level since December 2020. This means the stock has been trading at such a low price after nearly six years.

News Topical, Digital Desk : A sharp decline in the stock of IT giant Infosys has surprised investors. In Tuesday's trading, the company's stock reached its lowest level in more than six years. The decline was so severe that its market cap slipped below ₹5 lakh crore. Infosys has seen a greater decline than the stock market so far in 2026.

This level is the lowest since December 2020. This means that the stock has been trading at such a low price after nearly six years. To put this decline simply, it means that investor confidence has weakened. Since the beginning of 2026, Infosys shares have fallen by approximately 25%, while the Nifty 50 index has fallen by only approximately 11.4% during the same period. This means that while the market is declining, Infosys is under more pressure.

This decline has directly impacted the company's value. In intraday trade, the company's market cap fell to approximately ₹4.93 lakh crore, below the crucial ₹5 lakh crore mark. Although the stock later recovered slightly and was seen trading around ₹1,234, it still remains lower than Monday's low. The question now is why is there such a sudden pressure on the stock of such a large company? One major reason for this is the ongoing discussion of AI (Artificial Intelligence) in the technology sector. There's been a lot of buzz lately about autonomous AI agents and new AI tools, which is causing many corporate clients to rethink their IT spending and projects.

Analysts at Kotak Institutional Equities say that the full impact of AI is not yet visible, but corporate clients have become somewhat cautious.

Many CIOs and procurement executives are trying to understand how AI could transform IT services operations in the future. This is why decisions on some projects are taking longer.

However, this does not mean that demand in the IT sector has dried up. The brokerage says that this is simply a period of caution, with companies wanting to understand the impact of new technologies before making major decisions.

Infosys has also maintained its growth guidance for FY2026 between 3% and 3.5%, meaning the company expects modest but steady business growth.

Management says that while there is uncertainty in the global economic environment, the deal pipeline remains strong.

Analysts at JM Financial say that the demand environment remains similar to the beginning of the quarter.

Early signs of increased spending are visible, particularly in the financial services and energy, utilities, and resources sectors. These sectors are expected to see better growth in fiscal year 2027.

Meanwhile, Infosys has also announced that its board will meet on April 22 and 23, 2026. This meeting will approve the results for the fiscal year ending March 2026. The board may also decide on the final dividend.

The brokerage firm believes that the current narrative surrounding AI has put pressure on IT stock valuations.

However, the true picture will become clearer when companies release guidance for the next fiscal year. Infosys' guidance, due in April, could be a significant indicator for the entire IT sector.