Mumbai, Nov. 21: Markets today hammered the Infosys stock, fearing the company will not be able to meet the upper range of its revenue guidance both for the third quarter and the fiscal.

Infosys chief financial officer V. Balakrishnan had told a news channel today that its upper end sales outlook was at risk.

On the BSE, the Infosys stock slumped nearly 3 per cent, or Rs 78.30, to Rs 2,661.20.

Infosys had earlier projected revenue in dollar terms to grow 13.7-16.1 per cent to $1.80-1.84 billion in the third quarter. It had lowered the revenue forecast for the year to $7.08-7.20 billion, a rise of 17.1-19.1 per cent over last year but lower than the $7.13-7.25 billion it had expected earlier.

Today, the company indicated that client spending might not be robust because of the challenging economic conditions in Europe, which is faced with a debt crisis, and the US.

The US and Europe contribute a significant chunk to the revenues of Infosys.

“We are seeing a deterioration in the environment (compared to) what we saw at the beginning of the (third) quarter,” Balakrishnan said.

Analysts said though client spending was likely to be slow, Infosys would be able to meet the lower end of the guidance or come within the band.

Balakrishnan also subscribed to this view. He said that though the company had not revised its guidance, it might remain at the lower end.

Meanwhile, S. Gopalakrishnan, Infosys’s executive co-chairman, warned at a CII event in Chandigarh that the domestic IT sector would be affected if there was a further deterioration in the economic conditions of the US and Europe.

“If it (poor economic conditions in US and Europe) becomes worse, then we will see a significant slowdown (here),” Gopalakrishnan said at the event.