Shares of Infosys Ltd, an Indian IT giant headquartered in Karnataka, plunged 5.5% on March 13, deepening a two-day decline and pushing the stock into bear market territory. The sharp drop wiped out nearly ₹6,875 crore from the wealth of co-founder Narayana Murthy and his family. Analysts cite concerns over slowing U.S. IT spending and macroeconomic challenges as key reasons for the slump.
Infosys Ltd, one of India’s leading IT companies headquartered in Karnataka, witnessed a sharp stock decline on March 13, tumbling 5.5% in a single session. This extended its two-day slide beyond 8%, pushing the stock into bear market territory. The downturn has resulted in a notional wealth erosion of ₹6,875 crore for Infosys co-founder Narayana Murthy and his family.
Infosys, a multinational IT services and consulting firm, has been under pressure due to concerns over slowing IT spending in the U.S. and a challenging macroeconomic environment. The company, which plays a crucial role in India’s IT industry, saw its stock price drop to ₹1,563.80 during the session—nearly 22% lower than its 52-week peak of ₹2,006.80 in December 2024.
Murthy Family Wealth Takes a Hit
Narayana Murthy and his family collectively hold a 4.02% stake in Infosys, the value of which has now declined from ₹33,163 crore in mid-December to ₹26,287 crore.
- Narayana Murthy holds a 0.40% stake, which dropped by ₹684 crore to ₹3,299.79 crore.
- Sudha Murty, his wife, owns 0.92% of Infosys, with her stake now valued at ₹7,600.41 crore—down by ₹1,573.54 crore.
- Rohan Murty, their son, is the largest shareholder in the family with a 1.62% stake. His holdings fell by ₹2,771 crore to ₹13,378.5 crore.
- Akshata Murty, daughter of Narayana Murthy and wife of former UK Prime Minister Rishi Sunak, saw her 1.04% stake lose ₹1,779 crore, bringing its value down to ₹8,591 crore.
- Ekagrah Rohan Murty, Narayana Murthy’s grandson, holds a marginal 0.04% stake, also affected by the market drop.
Market Conditions and Analyst Reactions
The broader IT sector also faced significant losses, with the Nifty IT index sinking 4% and officially entering bear market territory, down over 21% from its peak. Infosys, along with Wipro and HCL Technologies, led the sell-off.
Global investment firm Morgan Stanley downgraded Infosys to an ‘equal-weight’ rating, cutting its target price from ₹2,150 to ₹1,740, citing concerns about revenue growth and valuation risks. However, some analysts remain optimistic. CLSA recently upgraded Infosys to ‘accumulate,’ setting a target price of ₹1,978. According to Trendlyne data, 28 out of 40 analysts tracking Infosys still have a ‘buy’ rating.
Despite these mixed outlooks, uncertainty looms over India’s IT sector as fears of a U.S. recession and the rise of AI-driven disruption continue to weigh on investor sentiment.
