IT stocks slumped in early trade on Friday amid reports that tech giant Accenture has lowered its revenue forecast for fiscal year 2024.
Shares of HCL Technologies dropped 5.62 per cent, Wipro skidded 4.24 per cent, LTIMindtree fell by 4.17 per cent and L&T Technology Services tumbled 4.13 per cent on the BSE.
The stock of Infosys declined by 3.70 per cent, Tech Mahindra tanked 3.57 per cent and Tata Consultancy Services dipped 2.97 per cent.
The BSE IT index quoted 1.63 per cent lower.
Benchmark equity indices tanked in early trade on Friday, surrendering their two days of rally, dragged down by IT stocks. During the early trade, the 30-share BSE Sensex fell 413.36 points to 72,227.83. The NSE Nifty skidded 86.8 points to 21,925.15.
"IT is likely to remain under pressure in view of the poor guidance from Accenture," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
As per reports, Accenture 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 weak forecast, Vikas Jain, Senior Research Analyst at Reliance Securities, said.
