New Delhi, March 12 -- Infosys shares fell nearly 4 percent on March 12 after Morgan Stanley downgraded its rating on the stock to 'equal-weight' from 'overweight.' The brokerage cited concerns over slowing growth and valuation pressures, leading it to slash its target price for Infosys to Rs.1,740 from Rs.2,150. This revision implies a limited upside potential of just 10 percent from the stock's intraday low.

"We see downside risks emerging for both the revenue growth of Indian IT services and valuation multiples," Morgan Stanley said in its note.

Morgan Stanley expressed concerns about the broader Indian IT services sector, noting emerging downside risks to revenue growth and valuation multiples. The brokerage highlighted that a combi...