Indian IT stocks witnessed a sharp selloff on Friday after global consulting giant Accenture issued a cautious business outlook, triggering widespread concern across technology counters.
The announcement led to a massive erosion of investor wealth, wiping out nearly ₹2 lakh crore in market capitalisation at the opening of trade and pulling the entire IT sector lower.
Leading Indian IT companies including Tata Consultancy Services (TCS), Infosys, HCLTech, Tech Mahindra, and Wipro declined between 3.3% and 6%.
The pressure was not limited to large-cap names, as mid-tier IT firms such as Coforge, Hexaware Technologies, Sonata Software, Tata Elxsi, and KPIT Technologies also saw steep declines. In fact, all top 15 losers on the Nifty 500 index in early trade belonged to the IT sector.
The broader impact was reflected in the Sensex-listed companies, where market capitalisation dropped by nearly ₹2 lakh crore within minutes.
Investor sentiment weakened significantly as concerns grew that Accenture’s outlook could signal similar demand challenges for Indian IT exporters in upcoming quarters.
Accenture reported a 6% year-on-year rise in revenue to $18.72 billion, but markets focused on its forward guidance. The company narrowed its full-year revenue growth forecast to 3–4%, compared to an earlier estimate of 3–5%.
Management also highlighted that client budgets are not expanding despite rising interest in artificial intelligence. Instead, companies are reallocating existing IT budgets toward AI projects rather than increasing overall spending.
The company also forecast weaker-than-expected revenue for the fourth quarter and flagged geopolitical disruptions in the Middle East that had already impacted business.
Additionally, outsourcing bookings fell 15% year-on-year, raising concerns since outsourcing remains a core revenue driver for Indian IT firms.
Global markets mirrored the weakness, with Accenture shares plunging nearly 15% on Wall Street. ADRs of Infosys, Wipro, and Cognizant also fell sharply, while IBM and Capgemini declined significantly.
Brokerages turned cautious, noting that valuation multiples leave limited room for disappointment if demand remains weak.
Analysts warned that Indian IT firms may need to increasingly rely on smaller AI-led deals as global discretionary spending continues to remain subdued.
