On Friday, February 27, 2026, market data confirmed that Infosys has endured its most brutal month in over a decade. The stock has plummeted 20.34% in February, resulting in a staggering market capitalization erosion of ₹1,33,824 crore.
The company’s valuation, which peaked at approximately ₹8.37 lakh crore, has been hammered by a “perfect storm” of global AI disruption fears and aggressive institutional selling.
The “February Meltdown” at a Glance
This month marks the worst performance for Infosys since April 2013, when the stock crashed 22.75% following a weak revenue guidance.
| Metric | Status (February 2026) |
| Monthly Decline | 20.34% |
| Market Cap Lost | ₹1,33,824 Crore |
| Current Share Price | ₹1,299.95 (as of Feb 27) |
| Drop from 52-Week High | 26.3% (from peak of ₹1,775) |
Why the Market is “Dumping” Infosys
The sell-off was triggered by a narrative shift that has moved from “AI as a tool” to “AI as a disruptor.”
- The Anthropic Effect: The primary catalyst was the launch of Claude Code and Claude Cowork Agent by the US-based AI startup Anthropic. These tools demonstrated a high level of proficiency in automating COBOL modernization—a multi-billion dollar business segment for Indian IT firms that involves updating legacy systems for global banks and airlines.
- Revenue Cannibalization: Investors are spooked by reports from Citrini Research and other brokerages suggesting that AI could automate 40% to 70% of the “application services” revenue that forms the backbone of the Indian IT model.
- FPI Exodus: Foreign Portfolio Investors (FPIs), who hold over 30% of Infosys, pulled over ₹11,000 crore out of the Indian IT sector in the first half of February alone, moving capital toward “pure-play” AI stocks in the US.
- Mutual Fund Notional Losses: Domestic fund houses, which hold a 22.1% stake in Infosys, have seen a notional wealth wipeout of over ₹41,892 crore this month.
How it Compares to the Sector
Infosys was not alone in its misery, though as a “bellwether,” its fall was the most visible. The Nifty IT Index crashed 19.13% this month, hitting its lowest level since November 2023.
- TCS: Lost roughly ₹1.1 lakh crore in market cap.
- Wipro: Hit a multi-year low, slipping below the ₹200 mark.
- HCL Tech: Saw a similar 15-18% decline.
The “Silver Lining”
Despite the crash, several brokerages (including Emkay Global and Motilal Oswal) have recently upgraded Infosys to a “Buy” or “Accumulate” rating. They argue that at a P/E ratio of ~18x, the stock is now “deeply oversold” and that its strong balance sheet and massive investment in sovereign AI cloud projects will help it navigate the disruption.
