Indian IT Stocks Tumble as Accenture Lowers FY26 Revenue Growth Guidance

Indian stock markets opened sharply lower on Friday as investors rushed to offload technology shares after global IT and consulting giant Accenture cut its fiscal 2026 revenue growth guidance and reported weaker new bookings, raising concerns over demand in the sector.

The selloff snapped a five-day rally in domestic equities, with benchmark indices Sensex and Nifty witnessing steep losses in early trade. The 30-share BSE Sensex plunged 786.58 points to 76,624.90, while the NSE Nifty50 dropped 210.95 points to 23,959.80.

Technology stocks bore the brunt of the selling pressure, dragging the broader market lower. The BSE IT index declined 5.38%, reflecting investor concerns over the outlook for India's information technology sector.

The sharp market reaction followed Accenture's latest earnings report, in which the Dublin-headquartered company lowered the upper end of its FY26 revenue growth forecast. The company now expects revenue growth of 3% to 4%, compared to its earlier guidance of 3% to 5%.

Accenture also reported weaker demand indicators. New bookings fell 3% year-on-year to $19.3 billion from $19.7 billion a year earlier, while sequential bookings declined 12.6%. The figures raised fears that global clients may continue to delay discretionary technology spending, impacting growth prospects for Indian IT service providers.

Among Sensex constituents, Infosys emerged as the biggest loser, falling more than 8% in early trade. Tata Consultancy Services (TCS) tumbled around 6%, while Tech Mahindra traded nearly 5% lower. HCL Technologies also slipped about 4.9%. HDFC Bank and Tata Steel were among the other major laggards.

In contrast, NTPC, Bharti Airtel, Trent and Power Grid managed to trade in positive territory despite the broader market weakness.

Market experts attributed the sharp correction to the ripple effect of Accenture's earnings announcement. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the guidance cut had triggered a selloff in the American Depositary Receipts (ADRs) of Indian IT companies, which subsequently impacted domestic stocks.

The negative sentiment was also visible overseas. Accenture shares closed nearly 18% lower on the New York Stock Exchange following the earnings release. ADRs of Indian IT majors, including Infosys and Wipro, also traded lower.

Accenture's results are closely watched by investors because the company serves as a bellwether for global technology spending trends. Any slowdown in its growth outlook often influences sentiment towards Indian IT firms, which derive a significant portion of their revenues from overseas markets.

Despite the weak bookings performance, Accenture maintained a positive outlook on artificial intelligence-driven opportunities. The company noted that the average size of AI-related projects continues to grow, reflecting strong client interest in adopting generative AI solutions.

However, investors remained focused on near-term challenges, including slower client spending, weaker deal pipelines and uncertainty around future growth. Analysts believe the latest guidance cut could raise concerns about the earnings outlook for Indian IT companies in FY27.

For now, optimism around AI-led growth has been overshadowed by worries over demand recovery, leading to a broad-based selloff across the technology sector and dragging benchmark indices lower.