Nifty IT tumbles as Accenture cuts FY26 guidance

What happened in Indian IT stocks

Indian IT stocks saw sharp selling pressure, with large caps such as Infosys, Wipro, Tata Consultancy Services (TCS), HCL Technologies, Tech Mahindra and Coforge coming under stress in Monday’s trading session. The initial move was framed as a reaction to Accenture lowering its FY26 growth guidance, which revived concerns about global technology spending and delayed client decision-making.

The selling was not limited to one day. In separate sessions cited across market reports, the Nifty IT index recorded steep intraday declines, and the weakness spread across both large and mid-cap IT names. At points during the declines, the index was described as down 5.8% on the day, with Infosys highlighted as the stock leading the fall in that session.

While valuations were said to have corrected significantly, market commentary also noted that analysts were split on whether the decline represented a buying opportunity or a sign of a longer slowdown. The immediate driver, however, remained the demand signal inferred from Accenture’s revised guidance.

Accenture’s guidance cut and why it mattered

Accenture’s updated outlook was a key trigger because its results and commentary are widely treated as a bellwether for global IT services demand. The report cited that Accenture had earlier guided for overall FY26 growth of 3% to 5% and later cut it to 3% to 4%.

The cut was described as “not a major cut,” but the market reaction suggested investors were sensitive to any fresh uncertainty on demand. The broader concern in the reports was that discretionary technology spending could remain under pressure if client decision-making stays delayed.

This signal fed into a re-rating of near-term growth expectations for Indian IT exporters, which depend heavily on global enterprise spending. As selling intensified, the Nifty IT index and several heavyweights moved lower together.

How the selloff unfolded across sessions

In early trade during one session, the Nifty IT index fell up to 2.6% to 27,519.15, with a reference level of 27,990 mentioned as the prior point of comparison. In another report describing Thursday’s trade, the index was down 2.7% to an intra-day low of 27,519.15.

In a separate Monday report datelined Mumbai, June 8, IT shares were described as extending losses for a fourth consecutive session. The Nifty IT index fell as much as 3% during that session, taking the cumulative decline to nearly 9% over the past four trading days.

On Tuesday, the sector again saw sharp pressure. One update said the Nifty IT index was down nearly 3% and trading around the 28,500 level at 11:24 am, making it one of the worst-performing sectoral indices.

In another early Tuesday trade reference, the Nifty IT index declined 2.33% and was described as hovering near a three-year low. The repeated references across days underlined how quickly sentiment turned against the sector.

Stock-specific moves: large caps and peers

The pressure was broad-based. In one snapshot, Infosys, LTIMindtree and HCLTech were cited as falling 2% to 3%, while TCS and Wipro also declined.

On the Thursday session described in the data, HCL Technologies led the decline among large caps, falling 3.5% and becoming the biggest loser on the Nifty IT index. Infosys and LTIM were also cited as falling around 3% each.

For Tuesday’s session at 11:24 am, specific price points were provided: Infosys dropped 3.87% to Rs 1,131.40 and TCS declined 4.15% to Rs 2,293.70. Tech Mahindra fell 3.64%, HCLTech slipped 3.32% and Wipro declined 2.94%.

In the Mumbai, June 8 report, TCS fell 1.6% to Rs 2,163.40, Infosys declined 0.4% to Rs 1,192.60, Wipro slid 6% to Rs 186, and HCLTech dropped 0.14% to Rs 1,153.10.

Global cues: inflation, interest rates and AI-linked valuation worries

The reports linked the domestic weakness to a broader global technology selloff. Risk appetite was hit by worries over increasing inflation and high interest rates, alongside stretched valuations in artificial intelligence-linked companies.

This risk-off mood was reflected in comments that investors had aggressively pared positions in high-growth sectors, particularly in the United States. The resulting spillover into Indian IT names was visible in the repeated session-wise declines in the Nifty IT index.

Separately, some market commentary also pointed to elevated bond yields and global demand uncertainties as factors keeping near-term sentiment fragile in frontline IT counters.

Another trigger: AI disruption concerns and legacy modernisation narrative

One report cited fresh concerns after Anthropic highlighted the potential of its Claude Code tool to modernise legacy systems built on COBOL. This narrative triggered another bout of pressure across the sector.

In that session, Infosys slipped over 3%, while HCL Technologies, Mphasis and Persistent Systems dipped more than 2% each. TCS, Tech Mahindra and Wipro were also cited as falling around 2%.

The Nifty IT index was quoted at 30,380.55, down 1,169.95 or 3.71% at 11 am. On the NSE, Infosys was down 47.40 points or 3.57% to 1,280.10.

Market cap erosion and notable levels

A separate data point highlighted the scale of the selloff in five large-cap names: TCS, Infosys, Wipro, HCL Technologies and Tech Mahindra. Fresh selling in these five stocks eroded over Rs 84,000 crore in their combined market capitalisation.

At 10 am in that report, TCS was down 3.21% at Rs 2,590.05 with a market cap of Rs 9,38,351 crore. Infosys fell 3.46% to Rs 1,282.50, HCL Tech declined 3.94% to Rs 1,370.15, Wipro was down 2.14% to Rs 201.55, and Tech Mahindra dropped 2.95% to Rs 1,399.20.

The combined market capitalisation of the five was cited as falling to Rs 21,78,962 crore intraday compared with Rs 22,63,411 crore on Monday, down Rs 84,448 crore.

Key numbers at a glance

Why this matters for investors tracking Nifty IT

The sequence of declines shows how quickly global cues can reset expectations for Indian IT services companies. Accenture’s guidance change, even if described as modest, fed a narrative of slower discretionary spending and delayed decision-making, which the market reflected through broad selling.

At the same time, the reports show multiple overlapping concerns. These included inflation and interest rate worries, valuation sensitivity in AI-linked names, and a separate strand of anxiety about AI-led disruption to traditional IT business models.

Some commentary also pointed to technical signals, noting that shares of Infosys, Wipro and TCS had slipped into an oversold zone and were trading below multiple simple moving averages (5-day through 200-day SMAs). While that observation does not change fundamentals, it highlights the intensity and persistence of the downtrend described.

Conclusion

Indian IT stocks faced repeated waves of selling as global tech sentiment weakened and Accenture’s FY26 guidance cut reset expectations for demand. The next sector cues for traders are likely to remain tied to global technology risk appetite and further company commentary on spending and deal decision cycles.