The Nifty IT index fell more than 6% to a three-year low on concerns triggered by Accenture's lowered revenue forecast. Infosys shares dropped 9% to a near six-year low, erasing nearly Rs 40,000 crore in market value. Other IT stocks including TCS and HCLTech also declined sharply.
The sell-off followed Accenture's guidance cut, which raised worries about reduced discretionary IT spending by clients. The US Federal Reserve's hawkish stance added to concerns over a potential slowdown in enterprise technology investments.
Infosys shares hit their lowest level in almost six years amid the broader decline in the sector. The Nifty IT index's drop reflected similar pressure on peers such as TCS, HCLTech, Wipro and Tech Mahindra.
Some market experts noted that valuations have become more attractive after the correction. Others remained cautious, citing ongoing AI-led disruption and slower growth prospects for the industry.