India’s Nifty IT index fell to its lowest since May 2023 on June 19.

The decline came after Accenture forecast fourth-quarter revenue of US$17.75 billion to US$18.4 billion and narrowed full-year local-currency growth to 3%-4% from 3%-5%.

Accenture said the Iran conflict cut revenue by about US$100 million from its expectations. Slower client decision-making, weaker discretionary spending, and delays in several large managed-services deals also weighed on the outlook.

Shares in Tata Consultancy Services, Infosys, and HCLTech fell 4%-8% as investors reassessed demand for Indian software exporters.

These companies get a large share of revenue from North America and are sensitive to US corporate tech spending trends.

The slump has added to a broader sell-off, with IT stocks down 25.4% this year, compared with a 9.7% decline in the Nifty 50.

Analysts said hopes of an improvement in fiscal 2027 could weaken further.

Morgan Stanley warned that expectations for a better September quarter may fade after Accenture’s commentary.

🔗 Source: Reuters

Recent Accenture developments