Explained: Why Accenture's warning sparked a Rs 1.35 lakh crore meltdown for TCS, Infosys, other IT stocks (opens original article in a new tab)

A revenue guidance cut by Accenture triggered a major sell-off in Indian IT stocks, with the Nifty IT index dropping 6% and losses exceeding Rs 1.35 lakh crore. Accenture's slowed growth in Consulting and revised full-year guidance raised concerns about the sector's future, prompting analysts to warn of further challenges and a shift toward M&A for growth.

• Accenture's revenue guidance cut led to a 6% crash in Nifty IT index, wiping out Rs 1.35 lakh crore in investor wealth.
• Accenture's Q3 revenue growth slowed to 1% YoYcc in Consulting, with full-year guidance lowered to 3-4%.
• Analysts warn of further growth moderation, potential earnings estimate cuts, and increased focus on M&A for Indian IT firms.