The Nifty IT index plunged as much as 6.43 per cent — or 1,831 points — to an intraday low of 26,634.50 on Friday, 19 June, after global technology and consulting giant Accenture slashed its FY26 revenue growth guidance and flagged a deteriorating client spending environment. The sharp sell-off reignited fears over the pace of recovery in global technology spending, hitting Indian IT majors across the board.

Scale of the Sell-Off

Infosys led the decline, plunging 7.4 per cent. Tata Consultancy Services (TCS) shed 5.6 per cent, while Mphasis fell 5.3 per cent. Persistent Systems dropped nearly 5 per cent and LTIMindtree slipped more than 4 per cent. Tech Mahindra and HCLTech each lost around 4.5 per cent, Coforge declined nearly 4 per cent, and Wipro shed over 3 per cent. By mid-morning, the index had pared some losses to trade around 5 per cent lower at 26,956.90, still the worst-performing sectoral index in early trade.

Accenture's Numbers and What Triggered the Panic

Accenture reported third-quarter revenue of $18.7 billion but reduced its annual growth outlook, citing continued uncertainty in client spending and revenue headwinds linked to developments in West Asia. The company also reported lower new bookings compared to the year-ago period. Accenture shares plunged nearly 18 per cent overnight, while Infosys American Depositary Receipts (ADRs) tumbled around 10 per cent and Wipro ADRs lost more than 3 per cent — setting the tone for Friday's domestic session.

Broader Market Impact

Selling pressure extended well beyond large-caps. On the BSE Midcap index, technology names including KPIT Technologies, Tata Elxsi, Hexaware Technologies, and LT Technology Services were among the top losers. Domestic benchmarks also came under pressure, with the Sensex falling over 700 points and the Nifty slipping about 200 points below the 24,000 level in morning trade — a decline of nearly 1 per cent.

What Market Analysts Are Saying

According to market experts, the guidance cut by Accenture directly triggered the sell-off in Indian IT majors' ADRs, which cascaded into domestic equities. Analysts noted that buying interest could emerge at lower levels as valuations become more attractive, but cautioned that pressure on IT stocks is likely to persist if earnings downgrades continue relative to market expectations. Experts also pointed out that despite the sharp correction, valuations of major Indian IT companies remain higher than Accenture's, which is currently trading at around nine times one-year forward consensus earnings. Given the prevailing uncertainty, analysts said they remain cautious on the sector.

Longer-Term Context

This correction does not occur in isolation. The Nifty IT index has already declined nearly 30 per cent from its 38,600 level over the past year. The latest sell-off follows additional headwinds earlier this week, when the US Federal Reserve signalled that interest rates could remain elevated for longer — dampening sentiment across global technology shares. This is the third significant pressure event on Indian IT within the same week, underscoring the sector's structural vulnerability to US macro signals.