IT stocks witnessed a sharp decline of up to 3% on June 23, after global technology major Accenture narrowed its full-year revenue growth guidance, sparking concerns over demand headwinds in the sector. Investors reacted negatively to the earnings update released last Friday, which failed to offer strong incremental cues for Indian peers.
Infosys emerged as the top loser on the Nifty IT index, slipping 2% to Rs 1,516.85. Shares of HCL Technologies, TCS, and Oracle Financial dropped between 1% and 2%, while LTI Mindtree fell 1.34% to Rs 5,160.65. Persistent Systems and Coforge declined 0.82% and 0.80%, respectively. The broader Nifty IT index was down 0.80% at 36,872.60.
Accenture reported 7% year-on-year revenue growth in the latest quarter and narrowed its FY guidance to 6–7%, from the earlier range of 5–7%. While the company reported strength in its financial services vertical—a key segment for Indian IT firms—its lower guidance and weak outsourcing bookings raised investor caution.
Brokerage firm HSBC noted that the results lacked any strong positive read-through for Indian IT stocks, even as Gen AI bookings grew. CLSA, however, maintained a positive outlook on the Indian IT space, with Infosys, Tech Mahindra, and Persistent Systems as its top picks, while maintaining caution on LTIMindtree.
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