Summary :
Indian stock markets opened lower on June 19, snapping a five-day winning streak as heavy selling in IT stocks weighed on sentiment. The decline followed Accenture's weaker FY26 revenue growth guidance and cautious outlook on technology spending, triggering a global sell-off in IT shares. The Nifty IT index fell over 5%, with TCS, Infosys, HCLTech and Wipro declining between 3.3% and 6%. Investors also booked profits after the Nifty and Sensex gained more than 4% over the previous five sessions. Global factors, including uncertainty around the US-Iran peace deal, a stronger US dollar and expectations from Reliance Industries' AGM, remained in focus.
Indian stock market indices started on the lower side on June 19, 2020, after their five-day winning trend, largely driven by massive selling pressure in information technology (IT) companies. This decline was prompted by a cautious stance adopted by the global leader in IT services, Accenture, regarding demand growth and spending trends in the technology industry.
The Nifty 50 opened with a fall of 0.73% to 23,991.20, whereas the Sensex registered a fall of 0.72% to 76,852.86. Even after a rally of more than 4% in the previous days' trading sessions, investors became cautious due to negative cues in the global market.
Accenture's Weak Guidance Hits IT Stocks
The main reason for the current downturn in the market is due to the fall in IT stocks. Accenture revised its FY26 revenue growth forecast to 3-4% from an earlier 3-5% and has issued a negative forecast on customer spending and deals.
Accenture posted Q2 revenue of $18.7 billion and net income of $2.39 billion. However, the markets paid more attention to its cautious growth forecasts. After the news, the shares of Accenture declined by 17.97%, causing a sell-off in global technology stocks.
The repercussions were visible in India as well, where the Nifty IT index was down by 5.1%. Large IT players like Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro were down in the range of 3.3%-6%. The shares of Infosys and Wipro ADRs had already fallen sharply overnight.
Profit Booking After Strong Rally
There was a sharp rally in the markets for the past five days, driven by a decline in oil prices and geopolitical stability. The Nifty index witnessed a rise of 4.3%, and the Sensex increased by 4.78%.
Following the steep rise, investors took the adverse impact in the IT sector as a reason to exit from their positions.
Global Factors Remain in Focus
Developments associated with the interim US and Iran peace deal are also being watched carefully by investors. Although the US has withdrawn its maritime embargo against Iran and shipments have returned to normal in the Strait of Hormuz, there is still uncertainty surrounding the deal’s implementation.
On the other hand, the hawkish policy of the US Federal Reserve has bolstered the US dollar. The US dollar index climbed 0.45 percent to 100.80, its highest point since May 2025.
Reliance AGM in Spotlight
The market players are also waiting for important announcements from the 49th Annual General Meeting of Reliance Industries to be held later today. The investors are expecting news regarding the Jio IPO, artificial intelligence investments, data centres, new energy initiatives, and proposed dividends of ₹6 per share for FY26.
Overall, it is the weak performance of IT stocks on the back of negative outlook by Accenture along with book profits after an impressive rise that has mainly contributed to the fall in the Indian equity market.
