Infosys share price tanks nearly 3% as Goldman Sachs downgrades stock rating - Check reason

Global brokerage house Goldman Sachs downgraded Infosys fearing a sharp cut in dollar revenue growth would slow down the IT sector. The brokerage house downgraded the stock from 'Buy' to 'Sell'. Besides, it curtailed its target price to Rs 1244, previously Rs 1722.  

What brokerages say on Infosys share target

Goldman Sachs feels given the upcoming macro slowdown, which is percolating down multiple leading demand indicators, we believe Indian IT sector's dollar revenue growth will start to materially slowdown from here, weighing on the secular tailwinds, said Goldman Sachs in a note.  

Apart from Infosys, the brokerage firm also slashed target prices of Tech Mahindra and HCL Technologies.  

Earlier, Macquarie had given a contrary call for Infosys. The brokerage maintained an 'Outperform' rating with target price of Rs 1870.  

Nomura was also bullish on Bengaluru-based tech giant. It reiterated a 'Buy' for target price of Rs Target 1700.  

It downgraded Tech Mahindra to 'sell' from 'Neutral' and cutdown target price from Rs 979 to Rs 868. Though Goldman Sachs maintained a 'Neutral' stance on HCL Tech, it reduced the target price of the IT stock to Rs 826 from Rs 976.  

How IT sector performed in past one month 

In the past one month, the IT sector has declined the most in the BSE and NSE. As on September 15, the Nifty IT index declined 7.2% on the NSE and a 6.9% drop was seen in S&P BSE Information Technology on the BSE.  

Infosys share price history

Meanwhile, Infosys share price dropped around three per cent to Rs 1432.05 per share at the BSE on Thursday. As on September 15, the counter declined around 10 per cent in the past one month, while it dropped over 16 per cent in the past one year.