Infosys shares slumped almost 3% in the early trading hours on Tuesday as the market participants reacted to the termination of its $1.5 billion agreement signed with an undisclosed global company focused on artificial intelligence (AI) solutions in September.

Shares of Infosys touched an intraday low of Rs 1,523, down 2.5% from the previous closing prices on the National Stock Exchange (NSE). At 12:50 pm, the stock was trading 1.33% lower at Rs 1,542.05.

Earlier on September 14, Infosys announced that it had entered into a Memorandum of Understanding (MoU) with an unnamed global company to provide enhanced digital experiences and modernisation and business operations services. 

In an exchange filing dated December 23, the IT major announced that the global company had terminated the MoU and that the involved parties would not be pursuing the Master Agreement.

As per the agreement, the total client target spend over 15 years was estimated at $1.5 billion. The deal loss indicates further pressure on Infosys and other IT companies in India to drift over the muted business over the past three to four quarters.