Nifty IT tumbles 6% as Accenture cuts FY26 view

Selling pressure hits Indian IT at the open

Indian IT stocks saw heavy selling on Friday, pushing the Nifty IT index down more than 6% in early trade after a negative trigger from global peer Accenture. The move made Nifty IT the worst-performing sectoral index by a wide margin in the morning session. The weakness in IT also dragged the broader market lower, despite otherwise mixed cues. All five of the top losers on the Nifty 50 were technology stocks during the early slide.

The fall came as investors reassessed demand conditions for IT services after Accenture trimmed the upper end of its full-year revenue growth forecast and issued a weaker-than-expected outlook. The guidance change, coupled with commentary pointing to a softer demand environment, raised concerns about discretionary spending and deal conversion for the sector.

Nifty IT leads sector losses, drags benchmarks

At 9:16 am, the Nifty IT index was down 6.1%. Around the same period, 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. A separate early snapshot showed that at 9:20 am, Nifty IT was down 5.8%, while Sensex was down 704.02 points, or 0.91%, to 76,705.96, and Nifty was down 190.70 points, or 0.79%, to 23,977.30.

These moves underscored how concentrated the pressure was in IT, relative to the broader market’s decline of about 1%. The sector’s weight in the indices meant that heavy falls in large IT names quickly translated into weaker benchmark levels.

Infosys, TCS, Tech Mahindra among biggest drags

Large-cap IT stocks led the decline, with Infosys emerging as the biggest laggard across multiple index readings. In one early read, Infosys fell 7.3%, while TCS and Tech Mahindra dropped about 6% each. HCLTech declined 5.5% and Wipro fell nearly 4%.

As of 9:38 am, Infosys was down 8.05% at Rs 1,036.7, making it the worst-performing Nifty stock at that point. In the same window, TCS fell 5.94% to Rs 2,072.4 and HCLTech declined 5.07% to Rs 1,102.9. Tech Mahindra and Wipro dropped 5.37% and 3.42%, respectively. Another early-market update also showed Infosys down 7.6%, Tech Mahindra down 6.3%, TCS down 6%, HCLTech down 5.3%, and Wipro down 3.6%.

All Nifty IT constituents trade in the red

The weakness was broad-based across the IT pack. The article noted that all Nifty IT constituents were in the red, with Infosys described as the top dragger, down 7.5% in one reference point. Other names mentioned among the steep decliners included Mphasis, Persistent Systems, Tech Mahindra and TCS, all falling over 6% each at that point.

The breadth of the fall mattered because it signalled a sector-wide reset in sentiment rather than a stock-specific move. Traders also pointed to the fact that all five top losers on the Nifty 50 were IT stocks, highlighting the dominance of the selloff.

Accenture guidance cut sets the tone

Accenture’s update was central to the day’s reaction. The company trimmed the upper end of its full-year revenue growth forecast and flagged a weaker demand environment. In a separate market commentary excerpt included in the text, Accenture’s guidance range was described as moving from 3%-5% to 3%-4%, reinforcing the message of slower demand recovery.

The article also referenced revenue headwinds from West Asia in the context of Accenture’s FY26 outlook, which added to the cautious tone. For Indian IT companies, Accenture’s results and guidance are often treated as a bellwether, given overlapping client budgets and similar enterprise spending cycles.

Global spillover: Accenture shares and Indian IT ADRs

The negative sentiment did not begin in India. Accenture shares fell sharply after its quarterly earnings and guidance update, with references in the text to the stock plunging more than 17%, nearly 18%, and being down as much as 19% after the market open.

The spillover was also visible in overseas trading of Indian IT names. On the New York Stock Exchange, the ADRs of Infosys and Wipro fell as much as 10% on Thursday following Accenture’s revised guidance. Another cited data point showed Infosys ADR tumbling 9.7% and Wipro ADR losing 3.6%.

What the selloff reflects about demand conditions

Market experts cited in the text linked the correction to concerns over discretionary technology spending by global clients, particularly in the US, which is described as the biggest revenue market for Indian IT services firms. The sell-off also revived worries around slower deal conversion and the pace of demand recovery.

The pattern is consistent with how the sector trades around global IT services updates, especially when guidance cuts are paired with weaker expectations on bookings. With global technology stocks also under pressure, the IT pack in India saw little near-term support.

Recent volatility adds to investor caution

The article text also referenced other recent bouts of weakness in the sector. It noted that the Nifty IT index had slumped over 4% in early trade on Wednesday, June 3, with heavyweights falling 2%-7% after the opening bell.

Separately, the text mentioned another sharp fall linked to Infosys issuing a muted revenue outlook for FY27, with Nifty IT tanking 5.35% to 28,512.95 and multiple IT names declining between about 4% and 7%. Infosys, in that context, guided for revenue growth of 1.5%-3.5% in constant currency terms for FY27, compared with an earlier guidance band of 3.0%-3.5%, while maintaining its operating margin outlook at 20%-22%.

Key numbers to track

Why this matters for Indian IT investors

The episode reinforced how closely Indian IT valuations and near-term trading can track global demand signals. Accenture’s guidance cut and weaker outlook were quickly interpreted as a broader read-through for enterprise technology budgets, especially discretionary programmes.

For Indian IT companies, the market’s focus typically shifts to the same set of questions after such events: whether pipeline conversion slows further, whether pricing holds up, and how quickly client spending resumes in core markets. Friday’s sharp, sector-wide fall showed that investors were not willing to wait for clarity in the immediate session.

Conclusion

Indian IT stocks faced a sharp selloff on Friday as Accenture’s guidance cut and weaker demand commentary triggered a reset in sentiment, pulling Nifty IT down over 6% and weighing on the Sensex and Nifty. The next set of cues for the sector will likely come from additional global IT earnings updates and any further signals on client spending and deal momentum.