Indian IT stocks emerged as the top losers in the market after Accenture’s disappointing Q2 earnings report, which highlighted slowing U.S. government spending and missed profit expectations. This triggered a broad-based selloff in IT shares, making the Nifty IT index the worst-performing sector on the NSE.
Accenture’s Q2 Earnings Disappoint
On March 20, 2025, Accenture reported:
- Revenue: $16.66 billion (slightly above expectations of $16.61 billion)
- Earnings per Share (EPS): $2.82 (below expectations of $2.85)
- Stock Performance: Plunged 7.3%, closing at $300.91
The company attributed the slowdown to reduced U.S. government contracts, a key revenue stream for IT firms. This raised concerns about future demand across the sector.
Indian IT Stocks: The Top Losers on NSE
The Nifty IT index was the worst-hit sector, with major IT stocks experiencing sharp declines (as per the provided data):
| Stock | Price (₹) | Change (₹) | % Change |
|---|---|---|---|
| Infosys (INFY) | 1,572.45 | -43.10 | -2.66% |
| TCS | 3,486.00 | -77.15 | -2.16% |
| HCL Tech | 1,531.85 | -30.15 | -1.93% |
| Wipro | 262.70 | -5.30 | -1.97% |
| Tech Mahindra (TECHM) | 1,389.95 | -20.60 | -1.46% |
Why Are Indian IT Stocks Falling?
- Accenture sets the tone for global IT – Indian IT firms operate in similar sectors, and a weak outlook for Accenture signals potential headwinds.
- Concerns over U.S. government contracts – With Accenture warning about spending cuts, investors fear Indian IT firms with exposure to U.S. federal contracts might also see slower growth.
- Negative investor sentiment – A global IT slowdown could lead to cautious spending by corporate clients, affecting the growth prospects of Indian IT firms.
Nifty IT Index: The Worst Performer
Due to the sell-off, the Nifty IT index underperformed the broader market, declining significantly compared to benchmark indices. The weakness in the IT sector weighed on overall market sentiment.
While Accenture’s weak guidance has spooked investors, Indian IT companies have strong private sector demand that may provide resilience. Upcoming Q4 results from Infosys, TCS, and others will be crucial in determining the sector’s outlook.
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