Infosys, a prominent player in the IT sector, is currently facing significant challenges. Once celebrated for its innovative solutions, the company has seen its stock price drop by 16% year-to-date, officially placing it in bear market territory. Over the past week, Infosys shares have plummeted by nearly 7%, causing unease among investors and erasing substantial wealth. Notably affected is co-founder Narayana Murthy and his family, who have experienced a staggering loss of approximately Rs 6,875 crore in their investments.

The Financial Impact on the Murthy Family

On March 12, Infosys shares took a sharp dive, falling over 5%, which extended a two-day decline exceeding 8%. As it stands, Murthy’s family holds a 4.02% stake in Infosys, valued at about Rs 26,287 crore, a significant drop from Rs 33,163 crore just three months prior.

• Narayana Murthy personally possesses a 0.40% stake, now worth roughly Rs 3,299.79 crore, reflecting a loss of Rs 684 crore.
• His wife, Sudha Murty, owns 0.92%, which has decreased to around Rs 7,600.41 crore, a loss of about Rs 1,573.54 crore.
• Their son, Rohan Murty, the largest family stakeholder with 1.62%, has seen his investment shrink by approximately Rs 2,771 crore, bringing his total to about Rs 13,378.5 crore.
• Akshata Murty, Narayana’s daughter and spouse of former UK Prime Minister Rishi Sunak, holds 1.04%, now valued at Rs 8,591 crore, marking a decline of around Rs 1,779 crore.

Even Ekagrah Rohan Murty, Narayana’s grandson, with a minor 0.04% stake, has felt the impact of this downturn.

Factors Behind the Decline

The challenges for Infosys are exacerbated by broader market trends and global economic concerns. The IT sector overall has been sluggish, reflected in the Nifty IT index, which has also faced downward pressure. Peers like Wipro and HCL Tech are experiencing similar declines, contributing to a general atmosphere of uncertainty.

Recently, Morgan Stanley downgraded Infosys to an “equal-weight” status and reduced its target price from Rs 2,150 to Rs 1,740, intensifying the sell-off.

Current Stock Performance

As of March 13, Infosys shares closed at Rs 1,579, representing a decline of about 14% over the past month and nearly 19% over the last six months. In the yearly context, the stock has dipped modestly by 2%. With a market capitalization of Rs 6.54 lakh crore, Infosys is trading approximately 21% below its 52-week high of Rs 2,006.45, while being around 16% above its 52-week low of Rs 1,358.35.

The current landscape highlights the volatility within the IT sector and the particular struggles facing Infosys, raising questions about the company’s future direction amidst a challenging economic backdrop.