Nifty IT sinks 6.5% as Accenture trims FY26 revenue view

Selling pressure hits IT pack at the open

Indian IT stocks came under heavy selling pressure after global technology services major Accenture trimmed the upper end of its full-year revenue growth forecast and issued a weaker-than-expected outlook. The move raised fresh concerns about demand trends in technology services, especially in overseas markets that drive revenue for most large Indian vendors. The Nifty IT index tanked 6.5%, sharply underperforming the benchmark Nifty 50, which was down about 1% at the same time. All constituents of the Nifty IT index were in the red, indicating broad-based risk-off positioning rather than stock-specific churn. The selling pressure also pushed IT companies to dominate the list of laggards on both large-cap and broader indices.

Nifty IT underperforms the headline indices

The weakness in IT weighed on the overall market in early trade. At 9:16 am, the Nifty IT index was down 6.1%, the steepest decline among sectoral indices by a wide margin. At that point, the Sensex fell 762.59 points, or 0.99%, to 76,647.39, while the Nifty declined 213.85 points, or 0.88%, to 23,954.15. Another snapshot showed that at 9:20 am, the Nifty IT index was down 5.8%, while the Sensex was down 704.02 points, or 0.91%, to 76,705.96 and the Nifty was down 190.70 points, or 0.79%, to 23,977.30. The repeated pattern across updates was consistent: IT led the decline and amplified the drag on the benchmarks.

Infosys leads losses as top Nifty dragger

Infosys emerged as the biggest drag on both the Nifty IT index and the Nifty 50 in early trade. One market update said Infosys was down 7.5%, while another reported the stock falling 7.3% and yet another pegged it at a 7.6% decline. By 9:38 am, Infosys was down 8.05% at Rs 1,036.7, making it the worst-performing stock on the Nifty at that time. The sharp fall in a heavyweight stock worsened index-level declines because Infosys has a large weight in Nifty IT and a meaningful weight in Nifty 50. The sell-off also signaled that investors were reducing exposure to the sector rather than rotating within IT.

TCS, Tech Mahindra and others extend the rout

Other large IT names fell sharply alongside Infosys. TCS and Tech Mahindra were reported down about 6% each in early trade, and a separate update put Tech Mahindra at 6.3% lower while TCS was down 6%. At 9:38 am, TCS was down 5.94% to Rs 2,072.4, while Tech Mahindra was down 5.37%. HCLTech declined 5.5% in one snapshot and 5.3% in another, and at 9:38 am it was down 5.07% to Rs 1,102.9. Wipro fell nearly 4% in one update, and at 9:38 am it was down 3.42%.

Mid-tier names also fall, showing broad-based stress

The decline was not limited to the largest companies. Mphasis, Persistent Systems and Coforge were named among the losers, with Mphasis and Persistent listed alongside Tech Mahindra and TCS as stocks declining over 6% each in one market description. Coforge and LTIMindtree (also referenced as LTM) were described as shedding over 5% each, while L&T Technology Services (L&T Tech) was down 2% in one early snapshot. The fact that all Nifty IT constituents traded lower reinforced the view that the trigger was sector-wide, linked to demand and guidance concerns rather than company-specific news.

What triggered the move: Accenture guidance and demand worries

The immediate catalyst highlighted in the market reports was Accenture lowering the upper end of its annual revenue growth forecast and issuing a weaker-than-expected outlook. That guidance reset expectations for discretionary technology spending, deal conversion timelines, and the pace of demand recovery. The sell-off was also linked to a steep overnight decline in Accenture shares and weakness in Indian IT ADRs, which often influence domestic sentiment before local trading begins. Another element mentioned was Accenture highlighting revenue headwinds from West Asia, adding to investor caution around regional disruptions and spending decisions.

Recent sessions show IT sentiment was already fragile

The sharp Friday decline came after multiple IT-led weak sessions cited in the market updates. On Thursday, the Nifty IT index fell 2.67% to 27,525.80 and was described as the worst-performing sector on Dalal Street as of 9:50 am, amid an overnight fall in US technology shares, AI-led disruption worries, and fears of prolonged high interest rates. Another report noted that Indian IT stocks faced heavy selling on Thursday, with the Nifty IT index dropping 2.7%, linking the move to global tech selloffs, inflation concerns and rising interest rates.

On June 3, a separate sell-off was attributed to profit booking after a rally. The Nifty IT index crashed 1,815.55 points, losing around 5.8% during the session to 29,301, compared with 31,116.55 at the previous close, according to NSE data cited in the report. Tech Mahindra was down 5% to Rs 1,491.80 during that session versus Rs 1,571.40 in the previous session.

Market impact: IT dominates benchmark losers

Across multiple snapshots, IT stocks occupied the top loser slots on the Nifty 50. One update said all five top losers on the Nifty 50 were IT stocks, underlining how concentrated the drag was. With the Nifty IT index down 6.5% against about a 1% fall in the Nifty 50, the underperformance was stark and visible even in the broader market’s intraday moves. The price action suggested investors were recalibrating near-term expectations on global demand signals rather than reacting to domestic policy changes.

Key numbers at a glance

Why the story matters for investors

For Indian IT companies, near-term market moves often track global guidance signals because a large share of revenue is tied to overseas enterprise spending. Accenture’s decision to trim the upper end of its revenue growth forecast acted as a fresh data point for investors assessing discretionary budgets and the speed of decision-making for large transformation deals. Separately, other updates in the provided material also show that IT sentiment has been sensitive to multiple factors in recent weeks, including global tech volatility, interest rate concerns, AI-related uncertainty, and profit booking after sharp rallies.

The next cues for the sector will likely come from further management commentary on demand and conversion cycles, and how companies navigate regional headwinds cited in the updates. For now, the day’s trade captured a clear message from markets: IT is being repriced quickly when global demand expectations soften.