TCS, Infosys, HCL Tech Take a Beating After Accenture’s Bad News
Man, what a rough day for Indian IT stocks. June 23 saw Infosys leading the pack straight downhill, with the Nifty IT index getting hammered worse than the broader market. And honestly? It’s not hard to see why—Accenture’s lukewarm results combined with that Israel-Iran tension created the perfect storm. Now everyone’s wondering: is this just a bad week, or are we looking at something uglier?
Why’s Everyone Dumping IT Stocks?
1. Accenture Dropped the Ball
Here’s the thing—when Accenture says they’re only expecting 1.5% to 2.5% growth next quarter? That’s like a warning siren for the entire sector. These guys are the canary in the coal mine for Indian IT firms. And guess what? Infosys and TCS ADRs tanked overnight. Like my friend at a Mumbai brokerage put it: “When the big dog limps, the puppies start whining.” Harsh but true.
2. That Middle East Mess
As if Accenture wasn’t enough, now we’ve got oil prices shooting past $86 a barrel thanks to Israel-Iran tensions. And let’s be real—when oil spikes, companies start pinching pennies. Tech budgets? First to get slashed. Remember 2022 when Russia invaded Ukraine? IT stocks got crushed by 12%. History doesn’t repeat, but it sure rhymes.
Who Got Hit Worst?
1. Infosys: The Poster Child of Pain
Infosys took a 2.43% nosedive—worst in weeks—with trading volume way above average. Not surprising though. Between their pathetic 1-3% growth forecast and some big projects getting axed, it’s been rough. Jefferies just cut their target price to ₹1,560, basically saying “don’t expect miracles soon.” Ouch.
2. The Others Didn’t Escape Either
TCS lost 1.8%, Wipro 1.9%, HCL Tech 1.7%—you get the picture. Sure, TCS has that $2 billion deal pipeline cushioning the blow, and HCL’s infrastructure biz is holding up okay. But when the whole sector moves together like this? That’s fear talking.
Bigger Picture Stuff
1. Nifty IT Got Wrecked
The Nifty IT index fell 1.9% while the regular Nifty only dropped 0.6%. LTIMindtree, Tech Mahindra—no one was safe. Every single stock in the index was bleeding red.
2. Global Markets Set the Tone
Nasdaq down 1.3%. Accenture’s US shares crashing 7%. Infosys ADRs dropping 2.1% before our markets even opened. You do the math—this wasn’t going to be a good day.
So… What Now?
1. Short Term? Buckle Up
Between Accenture’s earnings call on June 27 and whatever fresh hell comes out of the Middle East, things could stay rocky. Motilal Oswal’s advice? “Don’t try catching falling knives.”
2. Long Term? Maybe an Opportunity
Here’s the silver lining—Nifty IT’s trading below its 5-year average at 22x forward PE. And AI/cloud demand isn’t going anywhere. TCS alone has $900M in AI deals cooking. Morgan Stanley’s take: “Good stocks on sale.” But you gotta pick carefully.
Bottom Line
Yeah, the sector’s got problems. But selling everything in panic? Probably overkill. Keep an eye on three things: what Accenture says next, where oil prices go, and any new big deals. Like this fund manager told me: “Tech winters end—just don’t dress like it’s summer.”
Want to Dig Deeper?
- Who’s Who in NSE IT Index (And How Badly They’re Hurting)
- Mark Your Calendar: Infosys (July 11), TCS (July 12) Earnings
- Free Tools to Track Your Portfolio Without Losing Sleep
Source: Livemint – Markets