Core Viewpoint - The Indian software sector is experiencing a decline due to increasing market concerns about the potential impact of artificial intelligence on existing business models, with major companies like Infosys and TCS leading the downturn [1] Group 1: Market Impact - Infosys and TCS, the two largest software companies in India, saw their stock prices drop by over 4% on Thursday, contributing to a broader sell-off in the sector [1] - The Nifty IT index in India fell by as much as 4.6%, reaching its lowest level since October 1 of the previous year, with all 10 constituent stocks closing lower [1]

Core Viewpoint - Investors in the Computers - IT Services sector should consider Epam (EPAM) and Infosys (INFY) for potential value opportunities, with a closer examination needed to determine which stock offers better value [1] Valuation Metrics - Epam has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Infosys has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for EPAM is 15.25, compared to INFY's 21.20, suggesting EPAM may be undervalued [5] - EPAM's PEG ratio is 1.80, while INFY's PEG ratio is 2.48, indicating EPAM has a more favorable growth valuation [5] - EPAM's P/B ratio stands at 2.86, significantly lower than INFY's P/B of 7.24, further supporting EPAM's valuation advantage [6] - Based on these metrics, EPAM receives a Value grade of B, while INFY is rated C, highlighting EPAM as the superior value option [6][7]

Core Insights - The launch of Anthropic's new legal tool for ClaudeAI has raised concerns about the potential impact on traditional software demand and job losses in the software sector [1][2][3] - Standard Chartered Bank's report indicates that a 10% reduction in software exports could lower GDP growth rates by 1 percentage point for economies like Ireland and India, which heavily rely on telecom, computing, and information services exports [1][2] - The Indian IT sector, employing approximately 5.5 million people, could face significant layoffs despite the affected industry's small labor force percentage [1][2] - Major software exporters such as Tata Consultancy Services, Infosys, HCL Tech, and Tech Mahindra experienced stock declines between 5.8% and 8.1% during the peak of the sell-off [1][2] Industry Impact - The S&P 500 Software and Services Index has dropped by 7.5%, with a market capitalization loss of about $1 trillion since January 28 [2][3] - The increasing capabilities of AI tools like those developed by Anthropic may compress profit margins and lead to a decline in traditional software demand [2][3]

Core Insights - Infosys has extended its partnership with Madison Square Garden Entertainment Corp., Madison Square Garden Sports Corp., and Sphere Entertainment Co., reinforcing its role as the Official Digital Innovation Partner for key properties including the New York Knicks and New York Rangers [1][2] - The Theater at Madison Square Garden has been renamed the Infosys Theater at Madison Square Garden, enhancing brand visibility and engagement for Infosys [1][2] Partnership Details - The partnership includes two branded locations: the Infosys Theater and the Infosys Suite Level, with brand integration across 18 suites [2] - Infosys will enhance fan engagement through digital innovations, utilizing its AI-first offering, Infosys Topaz, to improve the fan experience for the Knicks and Rangers [2] Venue Information - The Infosys Theater at Madison Square Garden is a 5,600-seat venue recognized for hosting a variety of events, including concerts and sporting events, for nearly 60 years [3] - The venue has featured performances from notable artists and has been the site for significant sporting events, including the NBA and NFL Drafts [3] Company Background - Madison Square Garden Entertainment Corp. is a leader in live entertainment, operating renowned venues and delivering diverse experiences to millions of guests annually [4] - Madison Square Garden Sports Corp. manages professional sports teams, including the New York Knicks and New York Rangers, and operates a training center [6] - Sphere Entertainment Co. focuses on immersive experiences and technology, including the MSG Networks that provide live sports content [7] Infosys Overview - Infosys is a global leader in digital services and consulting, with over 330,000 employees and operations in 63 countries, focusing on digital transformation powered by cloud and AI [8]

Market Overview - U.S. stock markets are experiencing a pivotal moment with anticipation surrounding the Federal Reserve's interest rate decision and earnings reports from major technology companies [1] - Premarket trading shows a mixed but generally upward trend, with S&P 500 Futures up 0.3% to 7,028.75 points and Nasdaq 100 Futures up 0.6% to 26,228.75 points, while Dow Jones Futures remain flat at 49,159.0 points [2] Semiconductor Industry - U.S. chip stocks are seeing notable gains, with Nvidia increasing by 1.7%, AMD rising by 1.4%, and Intel climbing 4.6%, reflecting strong investor confidence in AI and advanced computing [3] Major Market Indexes - The S&P 500 Index closed at a record high of 6,978.60 points, a 0.41% increase, driven by strength in chipmakers and AI infrastructure stocks, particularly Micron Technology, which announced a $24 billion investment in Singapore [4] - The Dow Jones Industrial Average closed at 49,003.41 points, down 0.83%, primarily due to weakness in the healthcare sector, with UnitedHealth Group forecasting a revenue decline for 2026 [5] - The Nasdaq Composite Index closed up 0.91% at 23,817.10 points, reaching a 2.75-month high, with nearly 30% year-over-year growth attributed to AI advancements [6] Upcoming Market Events - The Federal Reserve is expected to hold its key interest rate steady within the 3.5%-3.75% target range, following three consecutive rate cuts in late 2025, with a focus on the labor market and consumer spending [7] - Major earnings reports are anticipated from tech giants Meta Platforms and Microsoft, which will provide insights into the technology sector's health and AI investments [13] Company News - Infosys announced a strategic AI-focused collaboration, indicating ongoing investment in AI solutions [14] - Boeing's CEO outlined a turnaround plan after six consecutive annual losses, addressing operational challenges [14] - HSBC is scaling back its M&A and equities businesses in Europe, the UK, and the Americas to focus on Asian operations [14] - JetBlue Airways reported a significant Q4 loss and provided weaker-than-expected revenue guidance, raising concerns about profitability [14] - RTX Corporation delivered higher-than-expected Q4 results, showcasing strong growth across its business segments [14]

H-1B Visa Freeze - Texas Governor Greg Abbott has ordered a freeze on new H-1B visa petitions for state agencies and universities, emphasizing that jobs should be allocated to qualified Texans instead of immigrants [1][2] - The decision is based on reports of abuse in the federal H-1B visa program and aims to ensure that American jobs are prioritized for American workers [2][3] - State agencies and public institutions must obtain written permission from the Texas Workforce Commission to petition for new H-1B workers [4] Reporting Requirements - Agencies and universities are required to report by March on the number of new H-1B petitions and renewal requests submitted last year, as well as the number of H-1B visa holders they currently sponsor [5] Impact on Employment - The private sector employs the majority of H-1B visa holders, with Cognizant Technology Solutions, Infosys, and Oracle being the top three employers [6] - Abbott's order is expected to significantly impact public universities and hospitals, which employ hundreds of H-1B workers [7] Ban on China-linked Companies - In addition to the H-1B visa freeze, Abbott announced a ban on China-linked tech companies from state systems to prevent data harvesting and exploitation of state systems [8] - The ban targets 26 Chinese or China-linked companies, including Alibaba and Shein, to protect the privacy and security of Texans [9] - The restrictions were expanded following a threat assessment by the Texas Cyber Command [10]

Core Insights - Infosys has announced a strategic collaboration with Cursor to establish a Center of Excellence (CoE) aimed at accelerating the adoption of AI-powered software engineering in enterprises [1][4] - The CoE will leverage Cursor's AI-assisted development capabilities and integrate with Infosys Topaz Fabric to enhance the development of AI-native products [1][4] - The collaboration is expected to improve development cycles, code quality, and modernization efforts for clients [4] Group 1: Collaboration and Objectives - The CoE will serve as a hub for scaling Cursor's AI software development capabilities across Infosys' global developer workforce [2] - It will feature an AI Engineering Experience Zone for clients to experience Infosys Topaz Fabric's engineering capabilities [2] - The collaboration aims to redefine how global enterprises build and scale AI-powered digital solutions [4] Group 2: Benefits and Impact - Enterprises using Cursor's platform have reported a 39% increase in shipped pull requests, alongside faster development cycles and improved test coverage [3] - The integration of Cursor with Infosys Topaz Fabric is expected to facilitate major modernization efforts for organizations [4] - The collaboration will empower over 100,000 software engineers at Infosys with next-generation AI coding tools [4]

Market Overview - The combined market valuation of nine of the top-10 most valued firms decreased by ₹2.51 lakh crore last week, with Reliance Industries experiencing the largest decline [1][2] - The BSE benchmark Sensex fell by 2,032.65 points or 2.43 percent during the same period [1] Company-Specific Valuations - Reliance Industries' market valuation dropped by ₹96,960.17 crore to ₹18,75,533.04 crore [3] - ICICI Bank's valuation decreased by ₹48,644.99 crore to ₹9,60,825.29 crore [3] - HDFC Bank's market cap fell by ₹22,923.02 crore to ₹14,09,611.89 crore [3] - Bharti Airtel's valuation diminished by ₹17,533.97 crore to ₹11,32,010.46 crore [3] - Tata Consultancy Services (TCS) saw a decline of ₹16,588.93 crore to ₹11,43,623.19 crore [3] - Larsen & Toubro's market cap decreased by ₹15,248.32 crore to ₹5,15,161.91 crore [3] - Bajaj Finance's valuation fell by ₹14,093.93 crore to ₹5,77,353.23 crore [4] - State Bank of India's market cap edged lower by ₹11,907.5 crore to ₹9,50,199.77 crore [4] - Infosys' valuation dived by ₹7,810.77 crore to ₹6,94,078.82 crore [4] - Hindustan Unilever's market cap increased by ₹12,311.86 crore to ₹5,66,733.16 crore [4] Market Sentiment - The market sell-off was attributed to weak global cues, persistent foreign institutional investor (FII) outflows, a depreciating rupee, and subdued corporate earnings [2][5] - Escalating geopolitical tensions and aggressive FII selling contributed to the market correction [5]

Core Insights - Infosys has inaugurated a new office in Zurich, Switzerland, marking a significant milestone in its 25-year presence in the country and reinforcing its commitment to digital and AI-led transformation for clients [1][2] Group 1: Office Launch and Strategic Importance - The new office is located at The Circle at Zurich Airport and serves as a hub for innovation and co-creation, bringing teams closer to clients across various sectors including manufacturing, financial services, life sciences, energy, telecom, and retail [2][3] - The Zurich office will leverage Infosys Topaz, an AI-first offering, and Infosys Cobalt, a suite of services and solutions to accelerate cloud journeys for Swiss enterprises [2][3] Group 2: Local Presence and Collaborations - Infosys has established a strong foundation in Switzerland through key acquisitions, such as Lodestone Consulting, and has partnered with leading organizations to deliver large-scale transformation programs [3][4] - The new office adds to Infosys' existing presence in Switzerland, which includes offices in Geneva, Basel, Baden, Lausanne, and Baar, facilitating deeper collaboration with local policymakers, industry partners, and academic institutions [4] Group 3: Community Engagement and Corporate Social Responsibility - Infosys is committed to corporate social responsibility in Switzerland, exemplified by a grant awarded to Little Scientists to support STEM education, aiming to reach 1,000 students in its first year [5] - The initiative will develop a multilingual virtual learning environment on the Infosys Springboard platform, offering coding and STEM courses in German, French, and Italian [5] Group 4: Leadership Statements - Dr. Nik Gugger, a Member of the National Council of Switzerland, emphasized that Infosys' investment in Zurich highlights the country's attractiveness as a technology and innovation hub [6] - Dinesh Rao, EVP & Chief Delivery Officer at Infosys, stated that the new office brings the full strength of Infosys' enterprise AI and digital innovation ecosystem closer to clients in Switzerland [6][7]

Core Viewpoint - Infosys has been recognized as one of the top 3 most valuable IT services brands globally, with a brand value of USD 16.4 billion and a 15% CAGR over the last six years, highlighting its strong market position and growth trajectory [1][3]. Group 1: Brand Recognition and Value - Infosys is ranked as the third most valuable IT services brand in the world according to Brand Finance's Global 500 2026 report [1][3]. - The company achieved a Brand Strength Index (BSI) score of 86.8 out of 100, improving its ranking by 16 places from the previous year [1]. - Infosys has demonstrated exceptional growth with a brand value CAGR of 15% over the past six years, reflecting strong demand for its services [3]. Group 2: Strategic Initiatives and Offerings - Infosys is committed to enhancing human potential through transformative enterprise AI solutions, which distinguishes it in the market [2]. - The company offers a suite of AI-powered solutions, including Infosys Topaz™, Infosys Cobalt™, and Infosys Aster™, which support businesses in their digital transformation journeys [2]. - Infosys has established strong partnerships and collaborations, such as a decade-long partnership with ATP and brand ambassadorships with international tennis stars, further enhancing its brand equity [3]. Group 3: Ethical Leadership and Sustainability - Infosys has been recognized as one of the World's Most Ethical Companies by Ethisphere, showcasing its commitment to trust and excellence [4]. - The company has achieved carbon neutrality for six consecutive years and has empowered millions through digital skilling initiatives [4]. - Infosys' ESG Vision 2030 emphasizes delivering transformative solutions while fostering inclusivity and creating sustainable value for businesses and communities [4].