India's Infosys shares slide after cutting full-year growth outlook
Shares of Infosys, India's second-largest software exporter, fell as much as 9% on Friday, after the company halved its full-year revenue growth outlook and posted a weaker-than-expected first-quarter profit.
The company cut its revenue guidance to 1%-3.5% on a constant currency basis from the previous 4%-7%.
Shares of the company dropped most since April 17, leading losses in the benchmark Nifty 50 index. Infosys Chief Executive Salil Parekh attributed the guidance cut to delays in decision-making by clients. Reduction in discretionary spending from clients amid a global inflation pressure and recession fears have acted as headwinds for Indian IT service providers. Last week, market leader Tata Consultancy Services warned of an uncertain demand environment, while smaller peers HCLTech and Wipro reported and projected muted growth.
