Morgan Stanley says Infosys Ltd may cut its fiscal 2013/14 revenue outlook to 4-6 percent growth, from the 6-10 percent growth it forecast in April, as wage hikes and productivity hit quarter-on-quarter margins and offset rupee depreciation.
Morgan Stanley adds traditionally a weakening rupee benefits small and mid-cap IT services more than larger ones such as Infosys.
An Infosys spokeswoman did not have an immediate comment.
Infosys shares have been under pressure since Infosys in April forecast full-year sales growth that widely missed analysts' expectations.
The software services exporter has since brought back former CEO Narayana Murthy as its executive chairman in an effort to turn around its fortunes.
Infosys shares were down 1.6 percent at 0526 GMT. The shares have gained about 7 percent after a 21 percent dive on April 12 when the company's forecast for the current fiscal year disappointed investors. Rival Tata Consultancy Services is little changed in the same period and the broader market has gained close to 6 percent.