IT stocks tumbled on Friday, with Infosys declining 8.5 per cent, after global tech giant Accenture trimmed its full-year revenue growth guidance.
Shares of Infosys tanked 8.59 per cent, Tech Mahindra slumped 7 per cent, Tata Consultancy Services dropped 6.52 per cent, HCL Tech tumbled 6 per cent and Wipro dipped 4.29 per cent on the BSE.
The BSE IT index tanked 5.18 per cent.
“The current sell-off in Indian IT stocks is a direct reflex reaction to global tech giant, Accenture, trimming its full-year revenue outlook. By nudging its constant-currency revenue growth guidance down to 3-4 per cent (from 3-5 per cent), and its core commercial guidance down to 4-5 per cent (from 4-6 per cent), Accenture has effectively confirmed that clients remain highly cautious with their wallets.
“Because Indian IT firms rely heavily on the same global pipeline for discretionary tech projects, this shift in Accenture’s forecast serves as a macroscopic warning for the entire sector, prompting investor’s selloffs,” Shashwat Singh, Fundamental Analyst- Bajaj Broking, said.
IT stocks dragged the markets sharply lower after a five-day rally. The 30-share BSE Sensex tanked 815.02 points to 76,594.96 in late morning trade. The 50-share NSE Nifty declined 212.85 points to 23,959.95.
“Guidance cut by Accenture has triggered sell-off in Indian IT majors’ ADRs (American Depositary Receipts),” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
