Infosys, TCS lead decline in IT stocks as Accenture narrows revenue outlook

Shares of information technology (IT) companies came under selling pressure on Monday, June 23, after global consulting and outsourcing giant Accenture narrowed its full-year revenue guidance and reported a decline in new deal bookings. The NIFTY IT index dropped as much as 1.83% or 713 points to hit an intraday low of 38,278.70, with all ten constituents trading in the red.

Infosys led the losses in the sector, slipping 2.3% during intraday trade. Other major laggards included HCL Technologies (-1.98%), Oracle Financial Services Software (OFSS, -1.6%), Tata Consultancy Services (TCS, -1.5%), Wipro (-1.4%), and Mphasis (-1.38%).

The sector-wide decline in IT shares came after Accenture’s third-quarter earnings report released late last week, which despite beating revenue expectations, painted a mixed outlook for the months ahead.

The company reported Q3FY25 revenue of $17.7 billion, ahead of analysts’ average estimate of $17.3 billion, driven by demand for its AI-led consulting services.

owever, investor sentiment turned cautious after Accenture narrowed its revenue growth forecast for FY25 to 6–7%, down from its previous range of 5–7%. Adding to the concerns, new bookings fell 6% YoY to $19.7 billion, with the decline in outsourcing deals more pronounced than in consulting.

The company cited ongoing weakness in the US federal contracting environment, where new contract flows have slowed and existing agreements are being trimmed as the Trump administration pushes to reduce federal spending.

Brokerage commentary on the Indian IT sector remained divided following Accenture’s update. HSBC noted that revenue growth moderated in Q3FY25 compared to the first half of the fiscal year, and flagged a 7% YoY decline in constant currency (cc) deal wins. It added that the sharp fall in outsourcing bookings pointed to a tepid demand environment and concluded that the results do not provide a strong read-across for Indian IT firms.

In contrast, CLSA maintained a positive outlook on the sector, highlighting Accenture’s upward revision in organic revenue growth guidance to 3–4% (from 2–4%) as a reassuring signal. CLSA maintained its positive stance on Infosys, Tech Mahindra and Persistent Systems.

As of 11:36 am, NIFTY IT index 1.41% lower at 38,440, underperforming the NIFTY50 index which was down 0.66%.