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Informist, Friday, Jun. 19, 2026

 

MUMBAI – Information technology stocks may remain under pressure in the near term amid rising concerns about weak discretionary spending, according to analysts. However, some technical analysts do not see the Nifty IT index falling sharply from here, after it plunged nearly 50% from its peak in early February. "It (IT index) may move sideways for the next 2–3 months," Anshul Jain, head of research at Lakshmishree Investments, said. 

 

Sentiment around these stocks was hit after IT bellwether Accenture scaled back its sales growth guidance for the financial year 2025-26 (Sept-Aug), and management commentary signalled near-term growth pressure amid a challenging macroeconomic backdrop. Pessimism around IT stocks was also boosted by the US Federal Reserve's hawkish comments at its latest policy meeting, which highlighted persistent inflation risks and signalled interest rate hikes later this year. Rising interest rates in the US are negative for domestic IT companies, which earn a significant share of their revenue from the US, as this would impact discretionary spending by clients from the region. 

IT stocks crashed Friday, with several stocks hitting multi-year lows intraday after Accenture cut its sales growth guidance for the full year to 3-4% from 3-5?rlier. Excluding an estimated 1% impact from US federal business, Accenture now expects its revenue for the full financial year to grow 4–5%, compared to the earlier 4-6% guidance. Later, in a post-earnings conference call with analysts, Accenture's management said it expects to see the indirect impact of the war in West Asia on its revenues in the Jun-Aug quarter after the conflict resulted in a $100-million hit on the company's top line in Mar-May. It also noted that revenue growth from existing customers has been stagnant.

 

"Overall, ACN's (Accenture's) commentary suggests that AI (artificial intelligence) is becoming an increasingly meaningful demand driver; however, it remains insufficient to offset near-term weakness from discretionary spending pressures, elongated deal cycles and delayed large-program conversions. Therefore, we continue to expect a gradual recovery trajectory for Indian IT rather than a broad-based acceleration in FY27," Choice Institutional Equities said in a report.

 

Motilal Oswal Financial Services noted that the AI implementation opportunity will materialise, but may not accrue to traditional vendors as it did in the past, and that a new, platformised, AI-native vendor template will emerge. "This will not be a winner-takes-all market and multiple vendors would survive as seen in the past cycles, but this will not be without a painful period of transition for the existing book of business," the brokerage said.

 

Further, analysts also see the possibility of a slowdown in earnings of domestic IT companies in the June and September quarters, which are otherwise considered seasonally strong. While the valuations of these stocks have become cheaper after the correction, the earnings recovery may take longer, analysts said. 

 

Friday, the Nifty IT index ended around 3.7% lower at 27426.85 points, with most constituents ending in the red, down 1-7%. In the short term, the sectoral index may find support at 26900-26000 points, Jain said. After seeing a range-bound move over the next 2-3 months, he expects the index to rise to the 28500-point level. Next week, market participants will watch out for the annual general meeting of Infosys scheduled Tuesday for management commentary on business outlook and demand environment.  

 

 

TOP HEADLINES

 

* Wipro arm to buy 20% more in Aggne Global IT Services, raise stake to 80%
* Analyst Concall: W Asia war impact on sales to continue Jun-Aug - Accenture
* HCL Tech partners with Intel for AI innovation zone in Chennai
* Accenture May qtr revenue up 6% YoY; co cuts upper band of full yr sales view
* Cost-to-cost reimbursement on staff's secondment taxable in India-US pact- HC
* Hexaware Tech to invest 25 mln pound sterling to expand UK ops
* HCLTech, e.solutions of Volkswagen group partner to scale up AI-led platforms
* TCS inks multi-year deal to be strategic IT partner for Norway-based Elopak
* Tottenham Hotspur Football Club picks TCS as digital transformation partner
* Wipro launches center of excellence in Bengaluru for Claude models
* Bearish on IT cos if AI integration doesn't pick up, says Ventura Securities
* US Supreme Court rejects TCS plea to review ruling in trade secrets case
* Persistent Systems, San Francisco Unicorns partner for Major League Cricket
* LTM launches 'BlueVerse for iRun' to help IT firms be outcome-driven
* Hexaware Technologies opens new delivery centre in GIFT City
* Anthropic disables Fable 5, Mythos 5 models on US govt's foreign access ban
* Affle 3i's step-down subsidiary in agreement to acquire AdColony Assets
* LTM launches 'AI 1000' to help engineers develop, scale AI-related work
* Kotak Sec flags revenue risk to Infosys, mid-tier IT cos from Claude Fable 5

 

Following are the resistance and support levels for key IT stocks for next week as per calculations based on their prices on the National Stock Exchange:

 

Company	Price	Week-on-week change in %	Resistance	Support
COFORGE LTD	1463.30	7.00	1514.30	1372.30
HCL TECHNOLOGIES LTD	1131.70	2.00	1164.30	1075.10
INFOSYS LTD	1051.40	(-)5.80	1085.10	1013.10
L&T TECHNOLOGY SERVICES LTD	3331.20	(-)0.60	3415.60	3232.80
LTM LTD	3832.50	(-)0.30	3896.20	3724.20
MPHASIS LTD	2267.50	(-)0.10	2361.20	2103.20
PERSISTENT SYSTEMS LTD	4829.00	0.40	5001.00	4516.00
TATA CONSULTANCY SERVICES LTD	2125.00	(-)1.70	2185.70	2029.50
TECH MAHINDRA LTD	1409.60	(-)1.40	1463.50	1317.10
WIPRO LTD	180.80	0.40	185.60	172.50
Index	Levels
NIFTY IT	27426.85	(-)1.30	28089.60	26303.10
NIFTY 50	24013.10	1.70	24132.70	23842.10
BSE SENSEX	76802.90	1.70	77156.70	76292.80

 

End

 

Reported by Arya S. Biju

Edited by Saji George Titus

 

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