A pedestrian passes by a digital broadcast displaying stock prices on the facade of the Bombay Stock Exchange (BSE) on June 4, 2024, the day the results of the Indian general election are announced in Mumbai.
Punit Paranjpe | AFP | Getty Images
Shares in India’s leading information technology companies fell as much as 7% on Friday after global professional services giant Accenture cut its earnings outlook and sentiment towards the sector soured.
Stocks in India’s largest IT companies, Tata Consultancy Serviceswhich fell more than 5%. infosys It fell more than 7%, but tech mahindra It decreased by more than 4%. The benchmark Nifty IT index fell more than 5%.
Accenture on Thursday lowered its sales growth forecast for the fiscal year ending August 2026 to 3% to 4% from its previous forecast of 4% to 5%.
Accenture CEO Julie Sweet spoke Thursday on CNBC’s Squawk on the Street about the company’s third-quarter results, saying, “On the revenue side, we were $90 million below revenue consensus, with a $100 million impact from the Middle East.”
Global brokerage Citi on Thursday said it remains cautious on India’s IT sector, noting that the Nifty IT index trades at a one-year forward P/E of around 16 times, while Accenture trades at 10 times.
“We have become cautious given the disruption of AI, increasing competition, and developments in the GCC. Macro uncertainty increases challenges in the near term,” Citi’s note said.
