BSE IT Index slumps as Infy forecast weak FY10

MUMBAI: Shares of Infosys Technologies took a beating on Wednesday in reaction to the below-than-expected guidance for FY10 which weighed on investor sentiment.

The software services firm gave a downbeat forecast in dollar terms for the fiscal 2009/10 amid slowing outsourcing and pricing pressures. The company, however, beat market expectations with a 29 per cent jump in quarterly profit, boosted by a weaker rupee.

The IT major forecast revenue for the year ending March 2010 to fall 3.1-6.7 per cent to between $4.35 billion and $4.52 billion, after rising 11.7 per cent last year.

"The pricing for the quarter declined by 3 percent," said SD Shibulal, chief operating officer in a statement.

At 10:40 am, the company���s shares declined 5.17 per cent to Rs 1336.20. The stock fell to a low of Rs 1300.05 in the first few minutes of trade. The decline in the share price of Infosys took a toll on the BSE IT Index, down 4.26 per cent, making the biggest sectoral loser.