Infosys indicated that the company has continued to see weakness in client spending throughout the current quarter ending Mar. 31, 2014, (4QFY2014) and the company may only be able to meet the lower end of its annual revenue growth guidance.

In January, Infosys had forecast revenue growth at 11.5-12.0% in FY2014. The management indicated that at the broad level some of the clients have seen slowdown in their businesses; these are across various verticals leading to unanticipated project ramp downs and cancellations in 4QFY2014. In addition, the factors that led to slowdown in client sentiment in 4QFY2014 might impact the company's revenues in 1HFY2015.

As per the company, clients in financial services are investing more into regulatory compliance and risk-related initiatives, where Infosys has strong capabilities. However, Hi Technology, which is the largest sub-segment within the manufacturing segment of Infosys, continues to see headwinds. The retail segment also continues to see sluggishness over the past two months and this sector may continue to remain weak in CY2014.

Commenting on Infosys, Angel Broking said, "The company had seen lot of attrition at the top management level during 2HCY2013, due to which the company's performance might remain choppy in the near-term. With optimistic IT spending environment, if TCS guides for a frontended growth as is always the case since 1Q and 2Q are seasonally strong quarters for Indian IT companies, Infosys stock is expected to see some correction in the short-term."

''We have revised our USD revenue growth estimates for Infosys to 11.5% and 11% in FY2014 and FY2015, respectively. We maintain our Neutral rating on the stock, said, Angel Broking.

Shares of the company declined Rs 271, or 7.38%, to trade at Rs 3,399.90. The total volume of shares traded was 165,581 at the BSE (9.32 a.m., Thursday).