The Nifty IT index lagged the broader market, with all 10 constituents in the red. Infosys, TCS, and HCL Technologies led the decline, falling up to 2.5% in early trade.

Indian IT stocks tumbled on Monday after U.S.-based technology major Accenture issued another subdued revenue forecast, lower deal bookings. They said there is increasing global uncertainty, sparking concerns over the demand prospects for Indian software exporters.

As of 11.30 am, the Nifty IT index fell 1.3%, with nine constituents in the red. Persistent Systems was the sole gainer on the index.

Shares of Infosys fell 2.5%, while Tata Consultancy Services (TCS) declined 1.4% and HCL Technologies dropped 2%.

Accenture reported $17.7 billion in third-quarter revenue for the period ended May 31, while it also saw a 6% drop in new bookings to $19.7 billion. The company also said economic uncertainty, geopolitical complexities, and changing customer behaviour are creating a higher degree of uncertainty in the market.

The company also projected full-year revenue growth in the range of 6% to 7%, compared with its prior estimate of 5% to 7%.

Indian IT companies are heavily dependent on outsourcing deals globally and often take cues from Accenture’s performance as an indicator of industry demand. 

Accenture’s revenue beat and upgraded guidance could buoy sentiment for Indian IT firms, but Motilal Oswal Financial Services notes a disconnect remains: Accenture cites strong demand for generative‑AI projects, while Indian vendors still see deal activity largely focused on cost rationalization rather than transformative initiatives.

Motilal Oswal added that concerns over U.S. tariffs have subsided—Nifty IT now trades about 6% above pre‑Liberation Day levels, indicating markets have largely absorbed that risk. 

The firm highlighted that a sustainable rerating for the sector will depend on a shift from maintenance-oriented spending to transformational, change‑the‑business investments and tangible earnings upgrades.

Meanwhile, Kotak Institutional Equities said the demand environment for Indian IT services remains stable, which could help companies meet their FY2026 growth forecasts, with possible upside for select firms. 

However, muted deal wins may weigh on growth in the second half of FY26 and early FY27. 

Kotak added that Accenture’s latest figures suggest either the global consultancy is no longer outcompeting Indian players for new deals—or that there is simply a shortage of large deals in the market. 

Both scenarios likely hold some truth, they said, citing recent checks that indicate weak net new deal flow and increased vendor consolidation activity.

A recovery in Indian IT stocks could kick in during the day, despite early weakness linked to Accenture's results, according to SEBI-registered analyst Ketan Mittal. 

Infosys’ American Depositary Receipts (ADRs) had fallen nearly 4% in U.S. trading on Friday, but the analyst said the stock may not mirror that decline on Indian exchanges. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<