IT stocks decline after Accenture lowers revenue forecast for FY24

New Delhi: IT stocks ended lower on Friday after tech giant Accenture lowered its revenue forecast for the sector for the 2023-24 fiscal.

Shares of LTIMindtree fell by 3.01 per cent, Infosys declined by 2.98 per cent, Wipro skidded by 2.73 per cent, and HCL Technologies dropped 2.46 per cent on the BSE.

Tata Consultancy Services dipped 1.53 per cent, L&T Technology Services went lower by 1.40 per cent, and Tech Mahindra lost 1.33 per cent.

During the early trade, IT stocks declined by up to 6 per cent, dragging the benchmark equity indices lower.

The BSE IT index ended 2 per cent lower.

Recovering early lost ground, the 30-share BSE Sensex ended 190.75 points or 0.26 per cent higher at 72,831.94, and the NSE Nifty advanced 84.80 points or 0.39 per cent.

“While most sectors experienced gains, the IT remained in the red due to subdued guidance from Accenture, a major global IT player,” said Vinod Nair, Head of Research, Geojit Financial Services.

Accenture on Thursday lowered its revenue forecast for fiscal year 2024 due to global uncertainty and weak client spending on consulting services. It now sees full-year revenue growth to be between 1-3 per cent, down from the earlier projection of 2-5 per cent.

Infosys and Wipro ADR (American Depository Receipt) shares declined after the US-listed Accenture announced a weak forecast, Vikas Jain, Senior Research Analyst at Reliance Securities, said.