Infosys Ltd shares tumbled 6.5% to 1,054.20 rupees on Friday, marking the steepest drop among major Indian IT firms, after Accenture Plc slashed its fiscal 2026 revenue-growth forecast, reigniting fears of a prolonged slowdown in global technology spending.
The Nifty IT index closed at its lowest level in three years, falling 3.65%, as investors reassessed the demand outlook for Indian IT exporters. The broader Nifty 50 slipped 0.64% to 24,013, while the Sensex ended 0.78% lower at 76,803.
Accenture, a bellwether for the sector, cut its local-currency revenue-growth outlook for fiscal 2026 to a range of 3% to 4%, down from the 3% to 5% range provided in March. The company also reported third-quarter new bookings of $19.32 billion, down from $19.7 billion a year earlier. CEO Julie Sweet said demand for 'large-scale reinvention remains strong,' but the cautious outlook weighed heavily on sentiment.
Analysts said the selloff reflects broad-based demand concerns rather than company-specific issues. Clients continue to delay discretionary projects, hitting firms like Infosys that rely on large digital transformation budgets. The $315 billion Indian IT industry is under pressure as enterprises hold off on non-essential work, adding to headwinds from artificial intelligence and geopolitical uncertainties.
Mayuresh Joshi of William O'Neil & Co noted that growth is 'clearly missing' and that Indian IT firms need to 'get their act together very fast' as hyperscalers and platform companies reshape enterprise IT workloads.
Other IT majors also declined. Tata Consultancy Services fell 3.55%, HCL Technologies lost 2.59%, and Wipro slipped 1.12%. Infosys was the worst performer, with nearly 45.67 million shares changing hands.
Shashwat Singh, fundamental analyst at Bajaj Broking, said Accenture's cautious stance confirms that clients are 'highly cautious with their wallets,' posing a direct challenge for Indian IT companies that depend on similar global contracts. Rupak De, senior technical analyst at LKP Securities, expects near-term consolidation, with the Nifty likely trading in a 23,800–24,200 range.
The key test for Infosys lies in converting its large deal pipeline into actual revenue growth. Until that happens, each major global IT earnings report will serve as a proxy for the company's near-term performance.
