Infosys Slides Nearly 8%, TCS and HCLTech Decline as Accenture Triggers IT Sector Sell-Off

On Friday, Indian equity benchmarks traded sharply lower, with the Nifty 50 falling 197.95 points, or 0.82 per cent, to 23,970.05. The technology sector emerged as the worst-performing segment, with the Nifty IT Index declining 1,527.95 points, or 5.37 per cent, to 26,938.50 during the session.

IT Stocks Dominate Losers List

The sell-off was broad-based across the sector, with all major IT stocks trading in the red. Among the large-cap names, Infosys led the decline, falling 7.67 per cent to Rs 1,041.00. Tata Consultancy Services (TCS) declined 5.89 per cent to Rs 2,073.50, while Tech Mahindra fell 4.29 per cent to Rs 1,385.60.

HCLTech dropped 4.09 per cent to Rs 1,114.30, while Wipro declined 3.26 per cent to Rs 176.88. The sharp fall across frontline IT stocks weighed heavily on benchmark indices, making technology the biggest drag on the market.

Worst Single-Day Fall Of 2026

The decline was significant from a historical perspective. With the Nifty IT Index plunging more than 5 per cent, it marked one of the sector's sharpest single-day declines of 2026 and reflected growing concerns over global demand trends for technology services.

Market breadth within the IT sector remained weak, with selling pressure visible across large-cap and Mid-Cap companies alike.

Accenture Guidance Triggers Global Technology Sell-Off

The primary trigger behind the sell-off was the latest guidance issued by global consulting and technology services giant Accenture.

The company reduced its revenue growth outlook for FY26 and now expects revenue growth of 3 per cent to 4 per cent, compared with its earlier expectation of up to 5 per cent. The revision raised concerns that enterprise technology spending remains weaker than previously anticipated.

Accenture also projected fourth-quarter revenue in the range of USD 17.75 billion to USD 18.40 billion, below market expectations of USD 18.47 billion. Following the announcement, the company's shares witnessed a sharp decline in the US market, creating negative sentiment across global technology stocks.

Artificial Intelligence Concerns Add Pressure

Apart from weaker guidance, investors are increasingly evaluating the long-term implications of artificial intelligence on the IT services industry.

The emergence of advanced AI-powered coding assistants and enterprise AI agents has intensified concerns that routine software development, maintenance and support functions may require fewer human resources in the future.

Indian IT companies have traditionally relied on a manpower-driven model built around billable hours. Any reduction in outsourcing requirements or project staffing could impact revenue growth and profitability over the longer term.

The sharp decline in Indian IT stocks highlights the sector's sensitivity to global technology spending trends and management commentary from major international players. With investors reassessing growth expectations and the potential impact of artificial intelligence on traditional IT services, technology stocks remained under significant pressure throughout Friday's trading session.

What are your thoughts on the sharp sell-off in IT stocks? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.