India IT Stocks Fall

Stocks of major Indian information technology companies fell as much as 7% on Friday.

Infosys led sector declines as the Nifty IT index dropped more than 5%.

Citi warned AI disruption and economic uncertainty could pressure growth.

Stocks of major Indian information technology companies fell as much as 7% on Friday after global professional service giant Accenture lowered its revenue guidance, souring sentiment toward the sector.

Shares of India's largest IT company, Tata Consultancy Services , were down over 5%.

Infosys dropped more than 7% while Tech Mahindra declined over 4%.

The benchmark Nifty IT Index slid more than 5%.

Accenture on Thursday cut its revenue growth guidance for the financial year ending August 2026 to between 3% and 4% from its previous forecast of 4% to 5 %. "On the revenue side, we missed revenue consensus by $90 million, and we had a $100 million impact from the Middle East," Accenture CEO Julie Sweet told CNBC's Squawk on the Street on Thursday, discussing the company's third-quarter results.

Global brokerage Citi said Thursday it remains cautious on the Indian IT sector, noting that the Nifty IT index trades around 16 times one-year forward earnings, while Accenture trades at 10 times. "We have been cautious given AI disruption, increased competitive intensity, GCC trends, etc.; the macro uncertainty increases the challenges near term," as per Citi's note.