Infosys Q3 Net up 33 Percent, Cuts FY12 Revenue Outlook

The company, however, managed to beat street forecasts with a 33 percent rise in its fiscal third-quarter profit as a weak rupee boosted margins.

"The outlook of Infosys this year will depend largely on the U.S. and European markets, which contribute more than half of its revenues combined," said Michael Huang, manager of Yuanta India Fund at Yuanta Securities Investment Trust in Taipei.

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"Its prospect might not be as good as it has been over the last few years. But in the longer term, this is a company that has a solid track record of its management and financial quality," said Huang whose fund owns Infosys shares.

Infosys shares were down 6.4 percent at 2,646 rupees by 0406 GMT, after falling nearly 8 percent to their lowest since November 30. The BSE Sensex was down 0.2 percent.

"The reduction in its dollar revenue guidance is a matter of concern," said Dhananjay Mishra, an analyst with brokerage Sushil Finance in Mumbai.

Global spending on information technology will rise at the slowest pace in three years in 2012 as Europeans, worried about the region's sovereign debt crisis, are cutting back on investments, research firm Gartner Inc said last week.

Gartner predicted global IT spending would rise 3.7 percent in 2012, down from its earlier estimate of 4.6 percent. The forecast for Western Europe was slashed to a 0.7 percent drop in spending from a previously expected rise of 3.4 percent.

"The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry," Infosys Chief Executive S. D. Shibulal said in a statement.

Comments from Fitch about the risk of the euro's collapse and bankers expressing a grim view over the Greek bailout on Wednesday heightened investor caution about the course of the debt crisis.

The head of Fitch's sovereign ratings urged the European Central Bank to beef up its buying of euro zone debt to support Italy and prevent the euro's collapse.

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