IT stocks rebound up to 3% after Accenture-led sector selloff.
Coforge, Infosys and TCS lead gains as valuations improve.
Nifty IT rises 1.5%, though demand concerns persist.
Indian IT stocks rebounded on Monday after suffering a sharp selloff in the previous session, as investors returned to the sector amid attractive valuations following concerns triggered by Accenture's weaker-than-expected guidance.
Shares of Coforge, Infosys, Tata Consultancy Services (TCS), HCL Technologies and Mphasis traded higher during the session, helping the Nifty IT index recover from its lowest level in more than two years.
1 June 2026
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Coforge led the gains among major IT stocks, rising 2.85% to ₹1,505 apiece. Oracle Financial Services Software advanced 2.09% to ₹9,840, while Infosys gained 1.95% to ₹1,071.90. TCS, HCL Technologies and Mphasis rose more than 1% each. Wipro was the only major IT stock trading in the red, slipping 0.88% to ₹182.40.
The Nifty IT index climbed 1.5% to 27,856 during intraday trade after plunging to 26,634.50 on Friday, its lowest level since April 2023.
Accenture Triggered Friday's Selloff
The recovery comes after a brutal selloff on Friday following Accenture's decision to trim its FY26 revenue growth guidance to 3%-4% from 3%-5% earlier.
The global IT services giant also projected fourth-quarter revenue of $17.75 billion-$18.40 billion, below analysts' expectations of $18.47 billion, according to LSEG data.
The weaker outlook reignited concerns that global enterprises remain cautious on discretionary spending related to IT consulting and digital transformation projects despite continued investments in artificial intelligence and cybersecurity.
Indian IT companies derive a substantial share of their revenue from the US market, making them particularly sensitive to changes in corporate technology spending trends.
Brokerages Remain Cautious
Several brokerages said Accenture's commentary reinforced concerns about a challenging demand environment.
Morgan Stanley said the results reflected a "tough macro climate" and warned that uncertainty could spill over into upcoming quarters, potentially affecting FY27 guidance from Indian IT companies.
HSBC noted that recent weakness appears to be driven more by geopolitical uncertainty than fears around AI-led productivity gains. The brokerage added that Indian IT companies currently lack significant near-term catalysts, although valuations are approaching historically attractive levels.
Jefferies said Accenture's revised outlook could result in consensus earnings estimate cuts across the sector and highlighted that traditional IT services demand remains under pressure.
Valuation Comfort Emerging
Despite the cautious outlook, some analysts believe the sharp market reaction may have been excessive.
Nuvama said Friday's correction appeared "highly exaggerated", even though Accenture's guidance cut and softer bookings remain marginally negative for Indian IT companies.
The brokerage maintained that generative AI is likely to expand the total addressable market for Indian IT firms over time and noted that valuations across the sector have become significantly more attractive following the recent correction.
The rebound on Monday suggests investors are selectively accumulating technology stocks after the sharp decline, though analysts continue to watch global spending trends closely for signs of a broader recovery in demand.
