On March 22, IT stocks took a heavy beating as traders capitalized on continuing negative sentiment.
The trigger was the decision of the global IT giant Accenture to lower its revenue forecast, indicating that its clients were spending less on consulting because the economy was unpredictable.
At 9:30 a.m., the Nifty IT index tumbled over 3%, with all its stocks trading in the red.
HCL Tech, Mphasis, and Persistent Systems came under the most pressure. For LTIMindtree, it was their lowest level since January. Infosys saw its largest drop in eight months. HCL Tech’s share price has experienced its largest fall in 15 months, with buying volumes skyrocketing for all IT counters.
The stock price of Tech Mahindra reached its lowest level in eight weeks. Accenture has revised its full-year revenue growth projection to 1-3 percent, down from the previous estimate of 2-5 percent.
The shares of ADRs were also lower overnight on Wall Street. These developments demonstrate the poor requirement for IT and consulting services owing to abundant interest rates, which have contributed to a slowdown in the market following a fast growth phase throughout the Covid period.
On the backdrop of the present economy’s self-certainty worldwide, consultancies across the world are affected by layoffs and hiring freezes.