Indian IT stocks like Infosys, Wipro, Tata Consultancy Services, HCL Tech fell up to 3% in Tuesday’s trading session, amid global tech sell off, snapping single day gaining streak on Monday.
The Nifty IT index declined 1.64% to 27,174.45, continuing its downward trajectory, with most major IT stocks ending the session in negative territory.
Infosys emerged as the biggest laggard among IT stocks, with its share price declining 2.44% to ₹1,039 on June 23. TCS and Wipro followed closely, each registering losses of more than 2%.
The broader weakness in the IT sector was evident as other major stocks, including HCL Tech and Mphasis, also slipped over 1% during Monday’s trading session.
The weakness in the IT stocks put pressure on the broader market, despite the Sensex and Nifty managing to trade slightly higher.
Why IT stocks are falling?
The decline in IT stocks mirrored weak global sentiment, as the Nasdaq lagged overnight following profit-booking in major technology stocks such as Alphabet, Meta, and Google.
Among the leading US technology stocks, Alphabet dropped 5%, while Meta, Amazon, and Microsoft recorded losses ranging from 2.3% to 4.7%.
Furthermore, IT stocks also came under pressure after global technology and consulting major Accenture lowering its full-year revenue growth forecast, a move that has heightened investor concerns about a potential slowdown in corporate technology spending across global markets.
Last week, Accenture lowered its FY26 revenue growth forecast to 3–4% from its earlier guidance of 3–5%. The company also estimated fourth-quarter revenue in the range of $17.75 billion to $18.4 billion, below analysts’ expectations of $18.47 billion, as per LSEG data.
The weaker-than-expected outlook from Accenture renewed concerns that enterprises are still exercising caution in discretionary spending on IT consulting and digital transformation initiatives, despite continued investments in areas such as artificial intelligence and cybersecurity. This is particularly significant for Indian IT firms, which generate a substantial share of their revenue from the US market.
Technical Outlook
According to Pabitro Mukherjee, Deputy Vice President- Technical Research, Bajaj Broking, Nifty IT index remains in a firm downtrend forming lower high and lower low in all time frame and is also trading below its short term and long-term moving averages. Index has immediate key support at 26180 levels being the identical lows of CY22 and CY23.
“Volatility is likely to be high in the coming sessions ahead of the quarterly result session of the IT stocks. Pricewise there is still no sign of reversal of the corrective trend, hence suggest to technically avoid at current levels. Let the price stabilize and only a formation of higher high and higher low in weekly chart and a move above the 50 days EMA currently placed around 29325 will be the initial sign of trend reversal,” Mukherjee said.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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