Why Coforge Share Price is Down Today
Coforge share price witnessed a sharp decline on December 9 2025 dropping nearly 4 to 5 percent during the trading session. The mid tier IT stock closed around Rs 1870 after hitting an intraday low of Rs 1855 making it one of the biggest losers in the Nifty IT index.
Despite positive analyst updates and ambitious growth plans shared at the recent investor day the stock faced heavy selling pressure due to multiple factors including broader market weakness and concerns about global monetary policy.
The decline in Coforge stock today reflects a combination of sector wide challenges and profit booking after a strong rally.
Indian IT stocks across the board experienced selling pressure with major players like TCS Infosys and HCLTech also trading in the red.
Investors are turning cautious ahead of the US Federal Reserve meeting scheduled for December 9 to 10 where monetary policy decisions could impact IT spending by American clients.
For Coforge which derives a significant portion of revenue from US markets this uncertainty has added to the downward pressure on the stock price.
The Indian IT sector experienced widespread selling on December 9 2025 with the Nifty IT index declining by nearly 0.3 to 0.5 percent during the trading session. This sector wide weakness affected Coforge along with other major players in the technology space.
Companies like TCS fell by 0.9 percent HCLTech dropped 1 percent and Infosys declined 0.8 percent as investors turned risk averse ahead of the crucial US Federal Reserve policy meeting.
Market participants are concerned about potential signals from the Fed regarding future monetary policy direction. While a 25 basis point rate cut is widely expected the guidance for 2026 rate cuts remains uncertain.
Any indication of a slower pace of monetary easing could impact IT spending budgets of US clients who contribute around 60 percent of Coforge revenue. This macro level uncertainty has led investors to book profits in IT stocks that had enjoyed a strong run in recent months.
The sell off was not limited to Coforge alone but represented a broader rotation away from IT stocks toward defensive sectors like pharma and public sector undertakings. Stocks like PNB gained 1.6 percent and ERIS surged 10.9 percent on the same day highlighting how money was moving out of technology names into other sectors.
Coforge stock had witnessed a decent rally in the weeks leading up to December 2025 with the stock trading near its 52 week high of Rs 2003.59 achieved in late 2024.
However the stock failed to break past the Rs 2000 resistance level for the second time which triggered profit booking and short covering by traders. Technical analysts noted that the rejection at this key psychological level led to stop loss orders getting activated resulting in accelerated selling.
The stock has now turned negative on a year to date basis for 2025 trading over 7 percent below its 52 week high. This correction comes after an extended period of gains and reflects natural profit taking behavior by investors who had accumulated positions at lower levels. Trading volumes spiked significantly to 21.79 lakh shares worth approximately Rs 409 crore indicating heavy institutional and retail participation in the sell off.
Many traders who had taken long positions were forced to exit as the stock breached key support levels. Options data showed that call premiums on Coforge rose by 65 to 70 percent indicating increased bearish bets by market participants. Futures traders who had shorted the stock at higher levels near Rs 1980 were able to book profits as the price declined to Rs 1860 levels giving them gains of 5 to 6 percent.
On December 8 2025 Coforge held its investor day where management outlined ambitious growth targets for the coming years. The company aims to achieve a $2 billion revenue run rate by Q4 FY26 which implies a growth of over 38 percent from FY25 levels. Management also highlighted plans to close 20 large deals in FY26 with 10 already secured and emphasized their focus on AI led digital transformation initiatives through platforms like Quasar AI Studio.
Despite these positive announcements brokerage houses issued mixed recommendations on December 9 which contributed to the volatility in stock price. Motilal Oswal maintained a buy rating with a target price of Rs 3000 suggesting an upside potential of 54 to 60 percent. The brokerage highlighted Coforge strong order book worth $1.6 billion and valued the stock at 38 times FY28 estimated earnings making it their top midcap IT pick.
Nomura also reiterated a buy rating and remained upbeat on the company ability to scale its ServiceNow practice and leverage GenAI opportunities. Morgan Stanley assigned an overweight rating with a target of Rs 2030 citing the company focus on large targeted deals and improving margins. However not all brokerages were equally optimistic. Jefferies maintained a hold rating while Emkay issued a reduce recommendation expressing caution on valuations at 32 times forward earnings and highlighting execution risks.
This divergence in analyst opinions created uncertainty among investors. While some viewed the dip as a buying opportunity given the long term growth potential others remained cautious about near term challenges including volatile client spending and lack of specific guidance for FY27. The absence of unanimous bullish sentiment from the analyst community made it difficult for the stock to find support during the broader market weakness.
From a technical perspective Coforge stock showed signs of weakness as it failed to sustain above the Rs 2000 mark which has now become a strong resistance zone. The stock formed a long bearish candle on the daily chart after rejecting this level for the second consecutive time.
This pattern typically indicates that selling pressure is building up and buyers are losing control at higher price points.
Key moving averages also turned negative with the stock slipping below its 21 day moving average which is considered an important short term trend indicator.
Technical analysts pointed out that the Relative Strength Index had dropped to oversold levels around 21 suggesting that the stock had been heavily sold in recent sessions. However this also means that a technical bounce could be possible if positive triggers emerge.
Support levels are now being watched closely by traders. The immediate support is seen at Rs 1855 which was the intraday low hit on December 9.
If this level breaks the stock could test the next major support zone at Rs 1740. On the upside resistance is pegged at Rs 1900 followed by Rs 2000. Most technical experts recommend waiting for the stock to stabilize and show signs of reversal before initiating fresh long positions.
The timing of the sell off coincides with heightened anxiety around the US Federal Reserve FOMC meeting scheduled for December 9 to 10. Investors globally are waiting to see whether the Fed will proceed with an expected 25 basis point rate cut and more importantly what guidance the central bank provides for future policy actions in 2026.
Current market expectations indicate that only around 2 rate cuts are anticipated in 2026 compared to earlier projections of 4 cuts.
For IT companies like Coforge which have significant exposure to US clients this matters greatly. Tighter monetary conditions in the United States can lead to reduced technology spending budgets as companies become more conservative with their expenses.
This could impact demand for outsourcing and digital transformation projects which form the core business for Indian IT service providers.
While management at Coforge has emphasized that demand remains strong for proactive players who can deliver value through AI and automation the broader concern about macroeconomic headwinds cannot be ignored. If the Fed signals a more hawkish stance than expected it could trigger further weakness in IT stocks across the board including Coforge.
Looking ahead the near term trajectory of Coforge stock will depend on multiple factors. In the immediate term investors will be closely monitoring the outcome of the US Fed meeting and any guidance provided on future rate cuts. A dovish stance from the Fed could provide relief to IT stocks and trigger a bounce back from oversold levels.
The company upcoming Q3 results scheduled for January 22 2026 will also be a key event to watch. Strong revenue growth and margin improvement could help restore investor confidence and validate management ambitious $2 billion revenue target. Additionally the closure of the pending Cigniti acquisition will be monitored as it represents an important strategic move for the company.
From a valuation perspective Coforge continues to trade at a premium compared to some of its peers. With 38 percent mutual fund holding and 34 percent foreign institutional investor stake the stock has strong institutional backing. Long term investors who believe in the company growth story and AI led transformation initiatives may view the current correction as an opportunity to accumulate at lower levels.
However it is important to note that the stock faces headwinds from elevated valuations and potential execution risks in achieving the ambitious revenue targets. The lack of specific guidance for FY27 also adds to uncertainty. Investors should do their own research and consider their risk appetite before making any investment decisions.
Share This Post