The Indian stock market shed 3.37 percent with panic-stricken investors dumping technology stocks after Infosys said its profits rose to 9.58 billion rupees (202 million dollars) from 8.08 billion rupees in the year to March.

Infosys revenues were up 39.1 percent at 36.23 billion rupees, with the company saying its growth was hit by a slowdown in its main market, the United States.

For the previous fiscal year, the Nasdaq-listed firm reported a 28.5 percent jump in profits, still much lower than growth of 114 percent a year earlier (March 2001).

The Bombay Stock Exchange's 30-share index crashed 105.92 points to close at 3,035.33 Thursday.

Traders, funds as well as retail investors dumped software shares. Second line software major Mastek faced a historical fall that saw its share price halved in a single trading session.

Infosys closed down 26.78 percent or 1,113.45 rupees at 3,044.60, Mastek was down 50.0 percent or 280 rupees at 280, Satyam Computer was down 15.46 percent or 27.55 at 150.70, HCL Technologies was down 15.96 percent or 26.55 at 139.80, while Wipro was down 18.24 percent or 224.80 at 1,007.60.

"It was a blood bath. Never ever I have seen such a fall in technology shares," said Venkat Iyer, director at R.K.Chary Stock Broking. "These are historic falls."

This were not made any better by Infosys' forecast for the current year.

The company forecast revenues between 946 million dollars and 963 million dollars for the year to March 2004.

"This is the best estimate for the current financial year. As we go forward and if the economic situation changes we will let everybody know (of a new forecast," said Nandan Nilekani, president and managing director of Infosys.

He said 2003 was a challenging year for the Indian software industry.

Nilekani said profit growth was levelling off after the boom period of

He said the company's revenues were mainly driven by about 60 percent growth in volumes and 40 percent growth in prices.

"During last year (when total revenues grew only 30 percent) it was led by a 35 percent volume growth but we saw a five percent negative growth in prices," Nilekani said.

Infosys added 28 new clients in the most recent quarter and added an additional 1,539 employees.

The US market accounted for 73 percent of the company's revenues while Europe came second with 17 percent.

"The weak economic environment coupled with the pressure on billing rates and a stronger rupee has exerted tremendous pressure on the margins," said T.V. Mohandas Pai, chief financial officer.

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