Contra Bet! MFs bought 1 crore Infosys shares in May when FPIs stayed underweight on IT pack

Mutual funds have bought shares in Infosys, with ICICI Prudential AMC purchasing Cognizant Technology Solutions, Aditya Birla Sun Life AMC purchasing Wipro, and Mirae Asset Management buying Coforge last month. Although the mutual funds were inclined to overweight on the IT sector, risks of further earnings downgrades remain. While some investors argue that a slowdown is already priced into the shares, a weak earnings outlook from US major Accenture Plc persists, which quoted challenging global macroenvironment, clients curbing discretionary spending, and reduced annual growth guidance for the second time.