Global software giant Infosys (NSE: INFY) stock plunged to its 52-week low on Monday after a prolonged downturn. INFY is down nearly 25% year-to-date and is among the least-performing assets in the Nifty index. The shares of the tech titan fell to a yearly low of 1,224, igniting fears of a bearish thesis. The steep price correction comes after the relentless decline in the Sensex and Nifty indexes that has rattled the Indian stock market.
The escalating conflict between Iran, Israel, and the US is the main reason for the decline. Infosys stock is now in the crosshairs of the development due to its heavyweight structure. Now that INFY has touched a 52-week low, should you wait for further dips or treat this as a perfect entry? Not every time does the market correct itself this much, which allows room for cherry picking.
Infosys stock is among the most sought-after equities in the markets due to its robust revenue model. The IT giant caters to global clients, providing services for all sectors in the software industry. There has never been a dull day in the business, as the tech industry is ever evolving. Its major business comes from back-end support of major software giants from the US, who depend on the company for day-to-day work.
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Infosys Stock Declines to 52-Week Low: JM Financial Gives a ‘Buy’ Call For INFY
JM Financial has given Infosys stock a ‘buy’ call as its price hovered around the 52-week low level. The financial services firm sees this as a buying opportunity, which is available at discounted prices. They highlighted that the company has received $2.736 billion worth of new business, which makes up to 57% of its upcoming revenue call. JM Financial wrote in a note to clients that INFY could beat market expectations in the next quarterly results.