Indian IT stocks fell sharply in early trade today, reacting to Accenture’s Q2FY25 earnings and guidance, which signaled rising macro uncertainty and concerns over discretionary spending. The Nifty IT index saw broad-based selling pressure, with Infosys, TCS, Wipro, LTIMindtree, and Persistent Systems leading the decline.
Market Performance (As of 9:15 AM)
- Infosys (-3.11%) at ₹1,565.30
- Persistent Systems (-3.02%) at ₹5,037.35
- LTIMindtree (-2.77%) at ₹4,298.80
- Wipro (-2.84%) at ₹260.40
- Coforge (-2.65%) at ₹7,377.70
- TCS (-2.48%) at ₹3,474.85
- Mphasis (-2.68%) at ₹2,244.00
- HCL Tech (-2.40%) at ₹1,524.45
- Tech Mahindra (-1.98%) at ₹1,382.60
- L&T Technology Services (-2.28%) at ₹4,548.60
- Oracle Financial Services (-1.63%) at ₹7,455.05
- KPIT Tech (-0.88%) at ₹1,270.30
- Tata Elxsi (-0.76%) at ₹5,336.55
- Tata Technologies (+0.03%) at ₹666.15 (Only gainer in IT stocks)
Brokerages Weigh In on Accenture’s Guidance
Global brokerage firms reacted to Accenture’s Q2FY25 results, expressing concerns over weak discretionary spending and margin pressure, while highlighting stability in financial services and consulting orders.
- Morgan Stanley: Accenture’s F25 revenue outlook was in line, but rising macro uncertainty and flat client budgets pose a challenge for FY26 revenue outlook for Indian IT firms.
- HSBC: IT services are outperforming consulting, with discretionary spending remaining stable, making the overall impact neutral to slightly positive for Indian IT.
- Nomura: Read-through from Accenture’s Q2 results raises caution on US federal contracts and macroeconomic risks. Sees growth bottoming out in FY25, prefers Infosys, CTSH, and Coforge.
- Jefferies: Accenture’s 5-7% FY25 growth guidance implies soft 2-4% YoY growth in 2H, weak deal bookings remain a negative factor. Prefers Infosys, TCS, and Coforge among top picks.
Outlook for Indian IT Stocks
While Accenture’s improved financial services performance is a positive takeaway, brokerages remain cautious about subdued discretionary spending and potential margin headwinds in the near term. Indian IT firms with high exposure to consulting and US federal contracts may face near-term challenges.
As a result, IT stocks are expected to remain under pressure until clarity emerges on demand recovery and deal momentum in FY26.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.
