IT Stocks Slump: Accenture Trims Guidance, Infosys Tanks

New Delhi, Jun 19 (PTI) IT stocks faced heavy drubbing on Friday, with Infosys declining nearly 7 per cent, after global tech giant Accenture trimmed its full-year revenue growth guidance.

Shares of Infosys tanked 6.69 per cent, LTM Ltd fell by 4.12 per cent, Tata Consultancy Services dropped 3.53 per cent, HCL Tech declined 2.74 per cent, Tech Mahindra edged lower by 2.47 per cent and Wipro dipped 1.20 per cent on the BSE.

Together these firms faced an erosion of Rs 77,597.46 crore from market valuation.

The BSE IT index tanked 3.57 per cent.

"The IT index experienced a sharp correction, driven by Accenture's softer outlook, which has heightened concerns over discretionary and digital spending," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Shares of Infosys dived 8.59 per cent in intraday trade, Tech Mahindra tumbled 7 per cent, TCS tanked 6.52 per cent, HCL Tech dropped 6 per cent, LTM Ltd slumped 5.95 per cent and Wipro fell by 4.29 per cent.


"The current sell-off in Indian IT stocks is a direct reflex reaction to global tech giant Accenture trimming its full-year revenue outlook. By nudging its constant-currency revenue growth guidance down to 3-4 per cent (from 3–5 per cent), and its core commercial guidance down to 4-5 per cent (from 4-6 per cent), Accenture has effectively confirmed that clients remain highly cautious with their wallets.," Shashwat Singh, Fundamental Analyst- Bajaj Broking, said.

Because Indian IT firms rely heavily on the same global pipeline for discretionary tech projects, this shift in Accenture's forecast serves as a macroscopic warning for the entire sector, prompting investors selloffs, Singh added.

IT stocks also dragged the markets sharply lower. The 30-share BSE Sensex dropped 607.08 points, or 0.78 per cent, to settle at 76,802.90. The 50-share NSE Nifty declined 154.90 points, or 0.64 per cent, to end at 24,013.10.

"The decline in the benchmark indices was triggered by a sell-off in IT stocks following a weaker-than-expected outlook from Accenture, which dampened hopes of an early recovery in the sector and raised concerns over demand prospects for Indian technology companies.

"The cautious commentary from the global IT bellwether reignited worries around discretionary spending, delayed deal conversions, and the impact of geopolitical uncertainties on client spending patterns," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "IT emerged as the biggest laggard after Accenture lowered its FY26 constant-currency revenue growth guidance to 3-4 per cent from 3-5 per cent earlier and issued a weaker-than-expected outlook, raising concerns over demand trends across the global technology sector."