IT Share: Accenture reduced revenue estimates, IT stocks fell face down in Indian market.

IT Stocks Crash: Veteran IT company Accenture reduced its revenue guidance for the year 2024, due to which a big fall in the ADR of Indian IT stocks was seen in the US stock market on Thursday. . And as expected, its effect was seen in the Indian stock market on Friday, March 25, 2024. As soon as the market opened, IT stocks fell flat. Nifty's IT index fell by 1300 points. There was a sharp decline in all 10 stocks included in the Nifty IT index. 

IT stocks fell by 5 percent 

The biggest decline among IT stocks was seen in the shares of Wipro which slipped 4 percent below the previous closing price. LTIMindtree's stock also fell by 4 percent to Rs 4945. Infosys shares also witnessed a sharp decline and fell by 3.66 percent and slipped below Rs 1500. 

Modest recovery from lower levels 

However, after the sharp fall, there has been some recovery in IT stocks from lower levels. At present, Nifty IT index is trading at 35,348 points with a fall of 685 points. Persistent is currently trading with a decline of 2.16 per cent, Coforge 2.05 per cent, Mphasis 2 per cent, HCL Tech 2 per cent, TCS 1.32 per cent, L&T Technology 1.15 per cent and Tech Mahindra 1.14 per cent. BSE's IT index is also trading with a decline of around 600 points, which had fallen to 1200 points in the morning. 

Why did IT stocks fall

In the guidance issued by IT company Accenture for 2024, the revenue estimate has been reduced in view of the global economic crisis. Revenue guidelines have been reduced from 1 to 3 percent. Accenture feels that companies will reduce the expenditure on projects in view of the difficult situation, which will affect the demand for IT services. Kotak Institutional Equities said in its report that Accenture has reduced the revenue guidance from 2 to 5 percent to 1 to 3 percent. According to Kotak, Accenture's results and outlook confirm our expectations of being cautious on demand in the near term. Accenture has indicated a decline in spending in the short term which is negative for companies like Wipro, LTIMindtree, Mphasis and Infosys which were estimating some improvement in spending. 

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