Infosys, TCS, HCLTech and other IT stocks remained under pressure on Friday after global IT services giant Accenture cut the upper end of its annual revenue growth forecast, raising fresh concerns about demand in key overseas markets.
As of 10:03 am, the Nifty IT index was down 5.19%, making it the worst-performing sectoral index of the day. Infosys was down 7.59% at Rs 1,041.9, while TCS fell 5.46% to Rs 2,082.9. HCLTech declined 4.31% to Rs 1,111.7, Tech Mahindra slipped 4.41% to Rs 1,383.9, and Wipro dropped 3.38% to Rs 176.66.
The selling pressure extended beyond the large-cap names. Persistent Systems fell 3.86%, Coforge declined 2.78%, LTIMindtree dropped 4.43%, and Mphasis lost 5.14%, highlighting the broad-based nature of the selloff across the technology sector.
The weakness in IT shares dragged the broader market lower, with the benchmark indices slipping into the red during morning trade.
The sharp decline also pushed several frontline IT stocks to multi-year lows as the market opened for trade. Infosys and Wipro hit their lowest levels in more than five years during the session, while TCS slipped to its weakest level in nearly six years, underscoring the depth of investor concerns over the sector’s growth outlook.
The selloff was triggered after Accenture lowered the upper end of its FY26 revenue growth guidance. The company’s commentary revived concerns that global enterprises, particularly in the US, may continue to remain cautious on discretionary technology spending, a key revenue driver for Indian IT services firms.
The sharp decline followed a selloff in the American Depositary Receipts (ADRs) of Indian IT companies overnight after Accenture’s guidance disappointed investors.
ADRs are certificates traded on US stock exchanges that represent shares of non-US companies, allowing American investors to buy and sell foreign stocks without trading directly on overseas markets.
Market experts said the correction reflects concerns over a slowdown in discretionary technology spending by global clients, particularly in the US, which remains the biggest revenue market for Indian IT services firms.
“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,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
The pressure on IT stocks also comes amid uncertainty around the pace of technology spending recovery. While companies have reported healthy deal wins in recent quarters, conversion of those deals into revenue has remained slower than expected as clients continue to scrutinise budgets and delay discretionary projects.
The sector is also facing investor concerns around the impact of artificial intelligence on traditional outsourcing models. Although Indian IT firms have positioned themselves as beneficiaries of AI adoption, markets remain cautious about how quickly new AI-led opportunities can offset weakness in legacy businesses.
Despite Friday’s sharp correction, analysts believe the selloff could attract value buying if earnings expectations stabilise. The steep fall has left several frontline IT stocks trading well below their recent peaks, reflecting investor concerns about the sector’s near-term growth prospects.
For investors, the focus will now shift to upcoming quarterly earnings, management commentary and signs of recovery in technology spending in the US and Europe. Whether Friday’s rout marks a temporary reaction to Accenture’s guidance cut or signals a deeper slowdown in global IT demand remains the key question for the sector.