Indian IT stocks like Infosys, Wipro, Tata Consultancy Services, HCL Tech fell up to 3% in Tuesday’s trading session, amid global tech sell off, snapping single day gaining streak on Monday.
Infosys emerged as the biggest laggard among IT stocks, with its share price declining 2.44% to ₹1,039 on June 23. TCS and Wipro followed closely, each registering losses of more than 2%.
The broader weakness in the IT sector was evident as other major stocks, including HCLTech and Mphasis, also slipped over 1% during Monday’s trading session.
Why IT stocks are falling?
The decline in IT stocks mirrored weak global sentiment, as the Nasdaq lagged overnight following profit-booking in major technology stocks such as Alphabet, Meta, and Google.
Furthermore, IT stocks are under pressure largely due to global technology and consulting major Accenture lowering its full-year revenue growth forecast, a move that has heightened investor concerns about a potential slowdown in corporate technology spending across global markets.
Last week, Accenture lowered its FY26 revenue growth forecast to 3–4% from its earlier guidance of 3–5%. The company also estimated fourth-quarter revenue in the range of $17.75 billion to $18.4 billion, below analysts’ expectations of $18.47 billion, as per LSEG data.
The weaker-than-expected outlook from Accenture renewed concerns that enterprises are still exercising caution in discretionary spending on IT consulting and digital transformation initiatives, despite continued investments in areas such as artificial intelligence and cybersecurity. This is particularly significant for Indian IT firms, which generate a substantial share of their revenue from the US market.
More to come..
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.