Accenture’s Cloudy Forecast Rains on Indian IT Parade

Indian IT shares fell on Monday, June 23, following a shift in investor sentiment abroad in the wake of Accenture's most recent quarterly results, fueling fresh doubts over expectations of demand in the sector. The fall, led by blue-chip players like Infosys, TCS, and Wipro, comes even as Accenture exceeded revenue forecasts in the third quarter, showing a nascent disconnect between top-line growth and investor mood.

 

Drastic Declines in Indian IT

Infosys led the losers on the Nifty IT index, down 2%, followed by TCS, HCL Tech, and Oracle Financial, all down between 1% and 2%. Wipro and its peers also dropped up to 3% as the sector was affected by global cues.

 

Accenture's Revenue Beat Does Not Settle Markets

Accenture recorded Q3 revenues of $17.7 billion, beating the analyst expectations and driven by high demand for AI-driven services. However, its shares fell 7–11% in the US, a sign of investor unease over falling margins, poor new bookings, and cautious expectations for core verticals.

 

Guidance Narrows, Demand Forecast Slows

Accenture lowered its full-year revenue growth outlook to 6–7% (from 5–7%), with organic growth now back to pre-pandemic levels. The group pointed to a 2% headwind from US federal contracts, as a result of policy rollovers and Trump administration spending cuts, although these have not yet had a material impact on the business.

 

Ripple Effect on Indian IT ADRs

Infosys ADRs lost 3–4%, and Wipro ADRs lost marginally by around 0.33%, reflecting the worldwide effect of Accenture's comment on the Indian IT mood.

 

Sector Faces Persistent Uncertainties Muted discretionary spending, slowing deal-making, and macroeconomic issues like US tariffs and geo-political tensions are seen by experts as a significant challenge for Indian IT players in 2025. The Nifty IT index trailed the wider market by 13–15% year-to-date.

 

Mixed Domestic Performance

As the global cues put pressure on the large caps, the tier-2 Indian IT stocks such as Persistent Systems and Coforge defied the trend and registered gains during the day, reflecting divergence in the space.

 

Analyst Takeaways

 

Moderate Near-Term Outlook:

Brokerages expect Indian IT demand to remain range-bound until visibility of demand improves, potentially in the second half of FY26. Cost management as well as deal consolidation will be expected strategic priority areas. Stock Tips During Volatility: Analysts recommend Infosys, TCS, HCL Tech, and certain mid-caps such as Coforge and Persistent Systems to investors looking for stability amidst short-term volatility. "Accenture's results are a bellwether for the global IT services sector. The latest report has reconfirmed apprehensions of dull demand and earnings risks for Indian IT firms in 2025." 

 

Source: Economic Times, CNBC-TV18, Times Now, BizzBuzz, News18, Business Today