Nifty slips under 24,000 as Accenture cuts FY26 view

Market open: IT-led weakness sets the tone

Indian equities were under pressure on Friday, June 19, as information technology stocks extended losses following a guidance cut from Accenture. The weakness in IT was strong enough to drag benchmark indices lower even as other sectors attempted to stabilise. Early trade reflected heavy selling across large-cap IT names, with the Nifty IT index the clear underperformer. The move followed a steep overnight decline in Accenture shares and a sharp reaction in US-listed ADRs of Indian IT companies. Investors tracked global tech spending signals closely because the US and Europe remain major revenue markets for Indian IT services firms. The day’s trade also kept a close watch on the Nifty 50’s 24,000 level, a widely tracked support zone.

What changed overnight: Accenture cuts FY26 growth guidance

The immediate trigger was Accenture lowering its FY26 revenue growth guidance and issuing a weaker-than-expected outlook. Despite reporting strong quarterly numbers, the company revised its FY26 revenue growth forecast to 3%-4% in constant currency terms, compared with its earlier 3%-5% range. Excluding the impact of its US federal business, Accenture’s revenue growth expectation moved to 4%-5%, down from the earlier 4%-6% estimate. Accenture cited weaker client spending trends, softer deal bookings, and limited near-term impact of artificial intelligence investments on customer budgets. It also flagged revenue headwinds from West Asia, adding to concerns around near-term demand visibility.

Key numbers from Accenture: revenue, outlook, and spending plans

Accenture reported third-quarter revenue of $18.7 billion (USD 18.7 billion), broadly in line with expectations. For the fourth quarter, it projected revenue in the range of $17.75 billion to $18.4 billion (USD 17.75-18.4 billion), below analysts’ average estimate of $18.47 billion (USD 18.47 billion), according to LSEG-compiled data. In a separate update around its Q4 FY25 and FY25 results, Accenture reported Q4 FY25 revenue of $17.6 billion (USD 17.6 billion), up 7% year-on-year, supported by demand for AI-driven services. For FY26, it also projected revenue growth of 2%-5% in local currency, or 3%-6% excluding the US federal business impact. Alongside its outlook, Accenture said it intends to spend $1 billion (USD 9 billion) on acquisitions this year, up from $1 billion (USD 5 billion) previously, to strengthen capabilities in AI, cloud, and data services. The company also guided for FY26 GAAP EPS of $13.19-$13.57 and adjusted EPS of $13.52-$13.90, and said it expects to return at least $1.3 billion (USD 9.3 billion) in cash to shareholders in FY26.

How Indian IT reacted: Nifty IT tumbles, frontline stocks hit

Indian IT stocks remained under heavy selling pressure, with the Nifty IT index down 5.8% at 9:20 am, making it the worst-performing sectoral index by a wide margin. Another snapshot showed the Nifty IT index falling 6.5%, compared with about a 1% fall in the Nifty 50 at the time. All five top losers on the Nifty 50 were technology companies in early trade, led by Infosys, which fell 7.6%. The selling pressure reflected renewed concerns over discretionary spending, slower deal conversion, and the pace of demand recovery in global technology budgets. Market participants also tracked whether the day’s decline would extend a broader drawdown already visible in the sector. In another session referenced in the provided context, the Nifty IT index fell 2.54% to 33,670.85, extending its losing streak to six sessions with a cumulative decline of 8.38%.

Benchmarks in early trade: Sensex and Nifty slip

The IT-led sell-off weighed on the broader market as well. In early trade, the Sensex fell 704.02 points (0.91%) to 76,705.96, while the Nifty declined 190.70 points (0.79%) to 23,977.30. Another market update showed the Nifty 50 down 0.85% to 23,962.8, with the Sensex also down more than 700 points. The levels underscored how quickly IT weakness can transmit to headline indices given the sector’s weight. Traders also monitored whether the decline would deepen if selling accelerated in heavyweight IT constituents.

ADR signal: overnight cues from the US market

Overnight moves in ADRs added to the cautious tone. Following Accenture’s announcement and the decline in its shares, Infosys ADR fell about 9.7% and Wipro ADR lost 3.6% in one of the reported updates. Separately, the broader context also referenced ADR declines of about 3% and 1.5% for Infosys and Wipro, respectively, in response to a Wall Street Journal article and Accenture results in an earlier market move. For domestic investors, these ADR reactions often serve as a cue for sentiment at the open, especially when global peers reset expectations on demand and booking momentum.

Technical view: why 24,000 matters for Nifty

From a technical perspective, the Nifty 50 has been tracked around the 24,000 mark as a key support zone. The provided market view noted that sustaining above 24,000 could support further upside towards 24,300-24,450. But a decisive breach below 24,000 may trigger profit booking and increase downside pressure, particularly if weakness in IT stocks intensifies. With the index trading below 24,000 in early data points, the session became a test of whether buyers step in to defend the level.

What analysts are watching: spending, deal flow, and valuations

The guidance cut revived concerns about weak discretionary technology spending by global clients, particularly in the US, described as the biggest revenue market for Indian IT services firms. Market experts linked the sell-off to worries about slower deal conversion and softer bookings trends. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said: "Guidance cuts by Accenture have triggered sell-off in Indian IT majors' ADRs. This can cause correction in IT stocks in the domestic market too. Buying can emerge at lower levels in IT since valuations are becoming attractive," according to the provided context. The same context noted that many frontline IT stocks were trading significantly below their 52-week highs, and that Infosys hit a fresh one-year low during the session.

Key data points at a glance

Why this matters for Indian IT and the broader market

Accenture’s guidance is closely tracked in India because it can influence investor expectations on deal pipelines and discretionary spending across global tech services. The session showed how quickly sector-level concern can become index-level pressure when heavyweight IT stocks fall together. The immediate focus in the market has shifted to upcoming quarterly earnings, management commentary, and clearer signals on tech spending recovery in the US and Europe. For now, the combination of a cautious outlook, weaker near-term booking signals, and elevated sensitivity to global cues is keeping IT stocks under scrutiny.

Conclusion

Friday’s decline was driven by IT-heavy selling after Accenture cut its FY26 revenue growth guidance and pointed to softer demand signals. With the Nifty trading below 24,000 in early action and the Nifty IT index down sharply, the next cues will come from company commentary, deal momentum indicators, and how quickly global tech spending stabilises.