TCS, Infosys, Wipro, HCL Tech shares fall up to 3% post Accenture Q3 results; here’s why Indian IT stocks slid

Shares of Indian information technology (IT) companies witnessed selling pressure on Monday, in sync with the broader market, with index heavyweights Tata Consultancy Services (TCS) , Infosys , HCL Tech , and Wipro falling by up to 3%. The sell-off in IT stocks was triggered after shares of global software services and consultancy firm Accenture crashed over 7% on the U.S. bourses on Friday.

Accenture shares were hammered even after the IT major reported robust earnings in the third quarter, fuelling concerns over future demand outlook amid elevated macro uncertainty. The Ireland-headquartered firm has increased the lower end of the annual revenue growth guidance to 6-7% from 5-7% earlier.

Weighed down by a sell-off in Accenture shares, the BSE IT index declined as much as 1.5%, with all blue-chip stocks floating in negative terrain. TCS, the country’s most valued IT stock, declined nearly 2% in intraday trade, while other sectoral leader such as Infosys, HCL Tech, Wipro, and Tech Mahindra dropped up to 3%.

Meanwhile, the domestic benchmark indices, the BSE Sensex and the NSE Nifty50, declined by as much as 1% during the trade so far as worsening Middle East crisis after U.S. strike on Iran nuclear facilities spooked investors.

Accenture's strong Q3 positive for Indian IT sector: Analysts

Accenture delivered stellar earnings in the third quarter of the current fiscal, despite global headwinds, which is a positive for Indian IT companies, said analysts.

For the third quarter ended May 31, 2025, Accenture reported revenue of $17.7 billion, up 7% YoY in constant currency (CC) terms, at the upper end of the guided range of 3% to 7%. Managed services revenue grew 9% YoY CC, while consulting services grew 6% YoY CC. New bookings were soft at $19.7 billion, down 7% YoY, including 30 clients with quarterly bookings over $100 million.

Accenture posted solid growth in Q3 FY25 despite elevated macro uncertainty, while it also raised its revenue guidance for the year, supported by lower than anticipated headwinds, Nuvama said in a report.

The brokerage believes that Q4 guidance too appears “solid” given the 2% headwind from federal business. “We view the results as slightly positive for Indian IT and maintain our positive stance on the sector, over the medium to long term, as we expect recovery in macro environment to accelerate enterprise tech spending.”

Motilal Oswal in a note said that Accenture’s deal bookings in managed services declined 10% YoY, reflecting the uncertain environment in Apr-May and federal business pressure. “Accenture’s revenue beat on revenues and another upgrade in guidance bode well for Indian IT; however, its commentary around clients diving head-first into GenAI-led programs is in contrast to Indian vendors' stance that deals still remain centered around cost takeout.”

The brokerage said that the fears of U.S. tariffs have not materialised and the market has quickly digested this issue as indicated by movement in stock prices of Indian IT services companies. The broader Nifty IT Index has risen over 6% in the past two months, reaching above its pre-liberation day level.

Meanwhile, analyst at PL Capital opined that the growth was driven by managed services, attributed to Federal Services, a positive read through for Indian IT companies. However, revenue guidance for Q4 ($1,717.6 billion) implies softness on account of caution among enterprise clients along with Federal mandates to prioritise spending.

“For the Indian counterpart, the slowdown in outsourcing bookings might further intensify conversion challenges on selective pockets, especially the tariff-induced verticals, while we expect BFS should continue its growth momentum in the subsequent quarters,” the brokerage said.

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