Infosys stock on Friday plunged nearly 9% after the company lowered its rupee revenue guidance, dragging down the BSE Sensex.
IT bellwether's scrip opened the day on a weak note following the guidance at its quarterly results announcement on Friday morning and lost 8.47% to touch a low of Rs. 2,317 on the BSE.
On NSE, the scrip tanked 8.77% to a low of Rs. 2,311.
Other stocks followed suit, with the BSE 30-stock Sensex tanking 56.55 points to 18,747.38 at 10:10am.
Market experts blamed the weak guidance, in rupee terms, by the company as the reason behind the steep fall in the stock.
"Although, the result were in-line with street expectations, the weak guidance pulled down the scrip on the bourses," Kishore Ostwal, CNI Research, CMD said.
According to Ashika Stock Broking Research Head Equities Paras Bothra: "Infosys reported below estimate results in the second quarter. The company disappointed with the rupee revenue guidance for FY'13, so, investors adopted profit-booking."
For FY13, the company lowered its rupee revenue guidance to be at least Rs. 39,582 crore (a year-on-year growth of 17.3%).
Last quarter, Infosys said it was suspending its practice of giving quarterly revenue guidance in view of the uncertain global economic environment, but revised its annual forecast for FY'13 to be at least Rs. 40,364 crore (year-on-year growth of 19.7%).
Infosys reported a 24.29% jump in consolidated net profit to Rs. 2,369 crore for the second quarter ended September 30.
The company's revenues were up 21.7% to Rs. 9,858 crore in the second quarter from Rs. 8,099 crore in the year-ago period, Infosys said in a BSE filing.
The company had posted a net profit of Rs. 1,906 crore for the July-September quarter of the previous fiscal (2011-12).
Considered IT bellwether, especially for its practice of providing revenue guidance, Infosys had been struggling to meet its own forecast in the last few quarters.
Selling pressure was seen across-the-board in the IT index. The country's biggest IT exporter TCS was trading lower by 0.86%, while the third-largest software company Wipro lost 1.78%.
Led by losses in these stocks, the BSE IT index was trading at 5,646.62, down 3.99% and was the top loser among the 13 sectoral indices.