Shares of India's second-largest IT services company, Infosys, plunged sharply by nearly 12 per cent in early trade on Monday.

With this, Infosys shares hit their lowest level in over two years. At 10 am, the shares of the IT bellwether company were trading 11.60 per cent lower at 1,228.10 apiece.

The development comes after Infosys reported weaker-than-expected results in the quarter ended March 2023.

Infosys on Thursday reported Q4 results, declaring that its net profit rose nearly 8 per cent to Rs 6,128 crore, while consolidated revenue for the period increased 16 per cent year-on-year to Rs 37,441 crore.

However, both its topline and bottomline figures were below expectations of analysts. That's not all.

The company also forecast weaker financial growth this financial year at 4-7 per cent. This would be the slowest in six years.

Infosys' weaker growth in the fourth quarter is similar to TCS, its bigger rival, which also reported weaker-than-expected growth. This is because both the firms saw a decline in overseas demand in the wake of a global slowdown and fears of a possible recession in the US.

A day after Infosys posted its Q4 results, several brokerages turned cautious about the stock's future performance outlook and most have trimmed their target price for the stock. This could have been the trigger behind today's sharp fall in Infosys share price.

Not just Infosys but all 10 major constituents of the Nifty IT index fell sharply, signaling that investors have turned cautious about the Q4 performance of IT companies. In early trade, Tech Mahindra also fell sharply by over 7 per cent, while TCS was down nearly 3 per cent.

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