Indian IT Stocks Under Pressure Amid Weak Global Demand and Economic Uncertainty

19 June, 2026: Indian IT stocks witnessed a sharp fall on Friday after global technology and consulting company Accenture reported weaker-than-expected earnings and lowered its revenue growth forecast. The company’s latest results have raised concerns about the growth prospects of Indian IT firms, even as it remains positive about the future of artificial intelligence (AI).

What caused the fall in IT stocks?

The BSE IT index dropped nearly 5 per cent in early trade after Accenture revised its FY26 revenue growth guidance to 3-4 per cent from the earlier 3-5 per cent range.

The company also reported weaker demand, with new bookings falling 3 per cent year-on-year to $19.3 billion. Compared to the previous quarter, bookings declined by 12.6 per cent.

Following the announcement, Accenture’s shares fell nearly 18 per cent in the US market. The impact was also seen in India, with shares of Infosys, Tata Consultancy Services and Wipro coming under selling pressure.

Why did Accenture lower its forecast?

Accenture cited global economic uncertainty as one of the key reasons for its cautious outlook. The company expects its fourth-quarter revenue growth to remain weak.

It also highlighted challenges such as the ongoing conflict in the Middle East, reduced discretionary spending by clients and difficulties in sectors like automobiles, which are facing pressure from rising fuel prices.

Accenture CEO Julie Sweet said business growth in Europe, the Middle East and Africa has been affected and future growth will depend on how quickly companies regain confidence and increase spending.

What is the role of AI?

Despite the slowdown in bookings, Accenture remains optimistic about AI-related opportunities. The company said clients are gradually moving from testing AI tools to implementing them in real business operations.

According to Sweet, demand for AI continues to grow as companies invest in digital infrastructure and new technologies. She added that AI-related projects are becoming larger and more advanced, especially in consulting services.

What does this mean for Indian IT companies?

Analysts at Motilal Oswal Financial Services said Accenture’s results are a negative sign for the Indian IT sector, especially since outsourcing bookings have declined significantly.

The brokerage expects the June quarter performance of major Indian IT companies to remain weak. It also believes that while AI-related opportunities will increase, a large share of this business may go to newer AI-focused companies rather than traditional IT service providers.

Meanwhile, analysts at Nomura said clients are now moving beyond AI trials and starting to use AI in actual business operations. This is expected to increase demand for cloud, data and digital transformation services.

However, the brokerage warned that growth may remain slow in the near term due to geopolitical tensions and global economic uncertainty. A strong recovery for Indian IT companies will depend largely on an improvement in the global economy, especially in the US.