Nifty IT Tumbles Nearly 6% As Accenture Outlook Triggers Broad Sell-Off

Indian technology stocks came under intense pressure on Friday, dragging benchmark indices lower after Accenture cut its FY26 revenue growth guidance and highlighted persistent weakness in client spending.

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At around 9:20 am, the Nifty IT index had dropped 5.8%, making it the worst-performing sectoral index on the NSE. The decline weighed on broader markets, with the Sensex falling 704.02 points, or 0.91%, to 76,705.96, while the Nifty slipped 190.70 points, or 0.79%, to 23,977.30.

Infosys, TCS Lead Declines

Technology stocks accounted for all five top losers on the Nifty 50. Infosys plunged 7.6%, followed by Tech Mahindra, which declined 6.3%. Tata Consultancy Services (TCS) lost 6%, while HCLTech and Wipro were down 5.3% and 3.6%, respectively.

Selling pressure extended to mid-cap names as well. Mphasis dropped 5.4%, Persistent Systems declined 5%, and Coforge fell 4.1%. KPIT Technologies, Tata Elxsi, Hexaware Technologies and LT Technology Services also traded lower.

The Nifty IT index slipped to its lowest level in three years, with all 10 constituents trading in negative territory.

Accenture Guidance Cut Hits Sentiment

The weakness followed an overnight decline in Accenture shares after the global consulting and technology services company lowered its annual revenue growth forecast. Accenture reported third-quarter revenue of $18.7 billion, broadly in line with estimates, but pointed to continued uncertainty in client spending and disruptions in West Asia.

The company’s shares fell nearly 18% in the U.S. market. Indian technology ADRs also reacted sharply, with Infosys ADR tumbling 9.7% and Wipro ADR losing 3.6%.

Accenture also reported lower new bookings compared with the previous year, raising concerns over demand visibility for the sector.

Benchmarks End Winning Run

Indian equities opened lower after posting gains for five consecutive sessions. Despite Friday’s weakness, both benchmark indices remained higher by around 1.5% for the week.

Twelve of the 16 major sectoral indices traded in the red. The broader market showed relatively limited damage, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling 0.3% and 0.1%, respectively.

Meanwhile, Reliance Industries traded higher ahead of its annual general meeting, while HDFC Bank declined 2% after the Reserve Bank of India approved a three-month extension for interim chairman Keki Mistry.

The sharp correction in technology stocks comes after the sector had already faced pressure earlier this week following the U.S. Federal Reserve’s indication that interest rates could remain higher for longer, adding to concerns around demand recovery for IT services companies.