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Indian IT stocks predicted to decline following reduced revenue forecast from Accenture




Indian IT stocks expected to fall tracking lowered revenue outlook by Accenture

The Nifty IT index has corrected by 5.5% in the last month, underperforming broader markets by 4.6% due to muted guidance from global services peers for CY24, as stated by Emkay Global Financial Services. Accenture’s guidance cut reflects softness in demand, impacting Indian IT stocks.

Reportedly, Accenture’s performance is a benchmark for the Indian IT industry. Indian IT stocks are expected to decline following Accenture’s lowered revenue outlook. Kotak Institutional Equities notes the deterioration in discretionary spending and short-cycle programs, suggesting weakness in IT spending.

Expectations for FY2025E are cautious for large IT companies due to weak demand. Growth prospects will vary based on deal ramp-ups, vertical exposure, and discretionary spending. JM Financial Institutional Securities highlights a trend of growth deceleration in CY24, with Accenture’s guidance cut putting FY25 growth estimates for large-cap Indian IT services peers at risk.


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