Why has Infosys's stock price fallen significantly in February 2026?

Infosys's stock price has fallen 17% in February 2026 due to mounting concerns that AI tools could enable in-house code generation, weakening investor sentiment across the tech sector.

What is the current stake of mutual funds in Infosys?

At the end of the December quarter, 45 mutual funds collectively owned a 22.12% stake in Infosys, an increase of 2.07 percentage points from the same period last year.

How might AI impact software makers like Infosys according to market concerns?

Market concerns suggest that AI tools could pose tough competition for software makers by enabling enterprises to generate code in-house, potentially reducing reliance on third-party vendors.

Home / Business and Economy / Infosys Stock Plummets Amidst AI Code Generation Fears

Infosys Stock Plummets Amidst AI Code Generation Fears

16 Feb

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Summary

Infosys shares dropped 17% in February, its largest monthly fall since April 2022.
Mutual funds collectively own 22.12% of Infosys, a 2.07% increase year-over-year.
AI's potential for in-house code generation sparks investor concerns across tech sectors.

Infosys Stock Plummets Amidst AI Code Generation Fears

Infosys's share price experienced a significant decline, closing with a modest drop of 0.26% on February 16, 2026, marking a four-day cumulative loss of 9%. This recent fall has driven the stock 17% lower in February alone, its biggest monthly drop since April 2022. The shares are now down 26.60% from their one-year peak of ₹1,861, placing Infosys among the worst large-cap performers and pushing its valuation below ₹6 lakh crore.