Indian IT stocks saw selling pressure in morning trade on June 23, 2025, after Accenture Plc stock took a sharp hit in the United States. Despite clocking solid revenue and earnings in Q3FY25, weaker-than-expected new bookings caused Accenture’s stock to tumble by nearly 11%, leading to a sector-wide downturn.
Accenture Plc's 3rd-quarter fiscal 2025 results showcased robust revenue and profit growth, with revenue rising 8% year-on-year to $17.7 billion, beating estimates of $17.3 billion. Its earnings per share climbed 15% to $3.49, while its operating margin improved to 16.8%.
Although the company raised its FY25 revenue growth forecast to 6–7% in local currency and upgraded its free cash flow guidance to between $9 billion and $9.7 billion, the highlight was a 6% decline in new bookings. Bookings stood at $19.7 billion for the third quarter, with $9.08 billion from consulting and $10.62 billion from managed services. Notably, generative AI-related bookings contributed $1.5 billion.
Accenture also reported having 30 clients with over $100 million in quarterly bookings, reflecting ongoing interest among large corporations. However, market sentiment was dented as investors appeared concerned about slowing demand visibility, causing its shares to drop 11% in New York trading on June 21, 2025.
Following Accenture's steep fall, Indian IT stocks opened lower on June 23, 2025, dragging the Nifty IT index down nearly 2%. Key players like Infosys Ltd., Tata Consultancy Services Ltd., and HCL Technologies Ltd. led the pack of losers.
Infosys bore the maximum weight, with the stock falling as much as 2.40%, making it one of the worst performers in the sector. TCS followed with a decline of 1.58%, and HCLTech dropped by 1.37%. Mphasis Ltd and Wipro Ltd also felt the heat, falling 1.30% and 1.23%, respectively.
The broader market indexes were also under pressure, with the Sensex falling over 600 points, and the Nifty hovering near 24,900. However, defence sector stocks defied the trend, gaining in response to geopolitical tensions in the Middle East.
Despite Accenture continuing to post solid financials, the sharp drop in new order bookings spurred concerns about future demand headwinds. Although the company’s increased guidance painted a relatively positive picture for FY25, investors chose to focus on decelerating client spending and macroeconomic uncertainty.
The ripple effect was evident in Indian markets, where Accenture’s bookings are often viewed as a leading indicator for outsourcing demand trends. The disappointment in bookings triggered a reassessment of revenue visibility for Indian players, leading to today’s sectoral decline.
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The muted booking numbers indicate that US clients may be taking a cautious approach to IT spending. Consulting bookings, a key forward-looking indicator, came in at $9.08 billion, while managed services bookings at $10.62 billion suggest existing contracts were more resilient than new ones.
Accenture’s generative AI-related bookings of $1.5 billion show continued investment in emerging tech, yet it remains a small portion of overall activity. The company’s maintained client base and margin expansion show operational strength, but the concern over demand caution remains notable.
On June 23, 2025, Tata Consultancy Services share price opened at ₹3,415 on NSE, below the previous close of ₹3,435.70. During the day, it surged to ₹3,425.00 and dipped to ₹3,370.00. The stock is trading at ₹3,390.20 as of 11:57 AM. The stock registered a moderate decline of 1.32%.
On June 23, 2025, Infosys share price opened at ₹1,601.00 on NSE, below the previous close of ₹1,622.90. During the day, it surged to ₹1,601.00 and dipped to ₹1,575.40. The stock is trading at ₹1,582.20 as of 11:57 AM. The stock registered a significant decline of 2.51%.
On June 23, 2025, Wipro Limited share price opened at ₹264.00 on NSE, below the previous close of ₹266.54. During the day, it surged to ₹265.20 and dipped to ₹261.81. The stock is trading at ₹262.65 as of 11:57 AM. The stock registered fell by 1.46%.
On June 23, 2025, HCL Technologies share price opened at ₹1,729.20 on NSE, below the previous close of ₹1,739.90. During the day, it surged to ₹1,729.80 and dipped to ₹1,702.40. The stock is trading at ₹1,710.00 as of 11:57 AM. The stock registered a decline of 1.72%.
Indian IT stocks declined on June 23, 2025, as Accenture’s share price plunged, raising concerns over global tech demand. While Accenture posted solid performance metrics for the third quarter, a 6% decline in new bookings weighed heavily on investor sentiment. This has sparked fears that Indian IT firms may also face tougher client conversations and slower deal momentum in the short term. Nifty IT's nearly 2% fall, led by Infosys, TCS, and HCLTech, underlines investor caution amid global macro developments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 23, 2025, 2:55 PM IST
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