Shares of domestic IT firms fell sharply on Tuesday after the US-based Cognizant Technology Solutions said that its revenue growth would grow marginally or remain flat in the March quarter.

Stock prices of India's largest IT firm TCS plunged over 4 percent to trade at Rs 2,271 on the Bombay Stock Exchange, while Infosys shares traded 3.7 percent lower at Rs 1,105.

Wipro shares fell about 2 percent to trade at Rs 535. Tech Mahindra shares fell to a 52-week low of Rs 448, down 4.3 percent.

Earlier on Monday, Cognizant reported 17 percent increase in net profit to $423.4 million in the October-December quarter, compared to $362.9 million in the same quarter in 2014. Its revenue increased by about 18 percent to $3.23 billion in the quarter.

However, the company predicted its revenue to come in the range of $3.18 billion to $3.24 billion for the March quarter, indicating that its revenues may drop or stay flat.

The sell-off in IT stocks is also due to weakness in the benchmark indices. Domestic equity indices came under pressure from a slump in global markets.

While the BSE Sensex fell 1.2 percent or 301 points to trade at 23,985 points, the 50-share Nifty was down 1.3 percent or 97 points to trade at 7,290 points.

Concerns over slowing global growth and falling crude oil prices have made foreign institutional investors (FIIs) to offload shares aggressively in the past few trading sessions.

In contrast, gold prices have been hovering around 9-month highs amid growing demand for the metal's safe-haven appeal.

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