The bluechip stock went down 4.27 per cent to settle at Rs 1,185.45 on BSE. During the day, it plunged 4.61 per cent to Rs 1,181.10.
The stock was the worst performer among the 30-Sensex components.
On NSE, it slipped 4.24 per cent to close at Rs 1,185.50.
Following the decline in the stock, the company's market valuation plunged Rs 12,138.69 crore to Rs 2,72,291.31 crore.
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Decline in the stock was also significant in dragging down the Sensex by 257.20 points to 26,763.46.
"Shares of IT major Infosys slipped by more than 4 per cent on the bourses after the company guided for 200 basis points cut in its guidance for June quarter margins. The cut in margin is due to the rising visa and salary costs, according to the company," Bonanza Portfolio, Head: Wealth Management and Financial Planning Achin Goel said.
However, the Bengaluru-based company was still on track to meet its full-year constant currency revenue guidance of 11.5-13.5 per cent.
"We still remain confident of (our guidance of) 11.5-13.5 per cent. But at the same time, given the volatile nature of our business, given the propensity of our clients to react immediately to some of the volatility, we will expect some short-term or quarterly bumps and ups and downs, but for the year, we remain confident," he said.
He added the company continues to see challenges in the short-term in the insurance space.