Infosys Technologies, the country's second largest IT major, plunged on Friday, closing the session 9.6 lower at Rs 2,988, as its quarterly earnings missed estimates.
The company, which reported a 13.62 per cent jump in consolidated net profit at Rs 1,818 crore for the quarter ended March 31, 2011, expects revenue in the range of Rs 31,727- Rs 32,270 crore for the financial year FY'12.
Market experts attribute the sharp fall in the stock to below-the-market revenue guidance expectation for FY12.
"The stock market was not eyeing for the numbers for the fourth quarter, what they were waiting for was a strong revenue guidance for FY12 which the company failed to provide," Ashika Stock Broking Research Head Paras Bothra said.
According to Motilal Ostwal Securities, "the quarter ending March is seasonally the weakest for the industry, as client usually finalise their budget spends for the next year, during this period."
Religare Securities Limited Executive Vice-President & Head, Retail Research Rajesh Jain said, "the fall in the stock is a knee-jerk reaction to the poor revenue guidance for FY12."