Infosys shares gain 2.5% on BofA’s rating upgrade

BofA said that regulatory tech spending by banks is expected to go up as they are required to meet Basel III norms. Moreover, SAP upgrade deadline in the US is now becoming more of a priority for enterprises amidst the 2027 support deadline.

Among other tailwinds, transformational IT spending could see an uptick post the US elections.

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Infosys has been a sector laggard with just over 5% returns in the past 12 months. In 2024, so far its share price has eroded by 2.70%. In contrast, Nifty IT has delivered returns of over 29% over a 1-year period while yielding 4.61% on a year-to-date basis. The returns by broader Nifty50 has been nearly 29% in the 1-year period.


The recent underperformance has dragged the counter below its 50-day simple moving average (SMA) while it still trades above its 200 SMA. Momentum indicators RSI and MFI show the stock in an oversold zone. While the former is hovering near 28, the latter is in strongly oversold territory at 16 as reported by Trendlyne. A number above 30 is considered to be oversold while above 70 is seen as overbought.

IT major Infosys had reported a consolidated net profit of Rs 6,106 crore for the quarter ended December, which was down 7% from Rs 6,586 crore reported in the previous year quarter. Revenue from operations during the third quarter rose by 1% to Rs 38,821 crore, compared with Rs 38,318 crore in the corresponding quarter of last year.

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