New Delhi, June 19 (IANS) A cautious outlook from consulting firm Accenture has led to heightened selling in India’s information technology (IT) shares, and many mid-cap IT stocks have dipped further than 55 per cent correction seen in shares of Tata Consultancy Services.

Tata Consultancy Services has tumbled nearly 55 per cent from its record high of Rs 4,592, while Wipro decreased 52 per cent, LTIMindtree declined 50 per cent and Infosys dipped 48 per cent from their respective peaks, a report from NDTV Profit said.

Mid-cap IT stocks outperformed large caps in terms of losses as Happiest Minds leads the laggards down roughly 78 per cent below its all‑time high.

Newgen Software followed by posting a 74 per cent decline and Sonata Software saw 66 per cent dip from its peak.

Birlasoft, Tata Elxsi and KPIT Technologies are down more than 60 per cent, while Nucleus Software, Mastek and Zensar Technologies have seen shares halve from record levels, the report said.

Accenture’s weaker-than-expected guidance for Indian IT stocks fuelled worries about medium term growth, with multiple brokerages warning that demand uncertainty and geopolitical disruptions could continue to weigh on growth.

The global consulting and technology services giant slashed its revenue outlook for the current quarter, leaving investors disappointed despite healthy profits in the sector.

Investment bank Morgan Stanley flagged that uncertainty could spill over into the coming quarters and potentially affect FY27 guidance from Indian IT firms.

HSBC found that geopolitical disruptions drove much of the weakness rather than concerns around AI-led productivity gains.

Indian IT companies continue to lack meaningful near-term catalysts, although sector valuations are now approaching trough levels, the firm said.

Higher US interest rates act as a headwind on IT stocks as they raise recession risks, which could make clients in key overseas markets cut technology spending and delay discretionary projects, a report had said in May.

Analysts noted that fourth‑quarter earnings and FY27 outlooks from India’s top‑tier IT firms largely missed expectations.

India’s IT sector — valued at around Rs 26 lakh crore — receives nearly 57 per cent of its revenue from the US market.

—IANS

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