Sensex fell 607 points as IT stocks declined sharply.
Accenture guidance cut triggered a 3.7% plunge in Nifty IT.
Nifty held above 24,000 despite profit booking and uncertainty.
Indian equity benchmarks ended lower on Friday as a sharp selloff in information technology stocks and renewed uncertainty surrounding US-Iran peace negotiations triggered profit booking after a recent relief rally.
The Sensex fell 607.08 points, or 0.78%, to close at 76,802.90, while the Nifty declined 154.90 points, or 0.64%, to settle at 24,013.10. Despite the weakness in headline indices, market breadth remained positive, with 2,137 stocks advancing against 1,905 declining shares.
1 June 2026
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Infosys emerged as the biggest drag on the benchmark, plunging 6.75%, while TCS dropped 3.55%, Tech Mahindra fell 2.63% and HCL Technologies lost 2.59%. HDFC Bank also weighed on sentiment, declining 2.40%.
Accenture Outlook Sparks IT Rout
Technology stocks bore the brunt of selling after global IT services giant Accenture narrowed its FY26 local-currency revenue growth guidance to 3%-4%, triggering a sharp selloff in global technology shares and Indian IT ADRs overnight.
The Nifty IT index slumped 3.65%, making it the worst-performing sectoral index. According to Nishchal Jain, Quant Researcher at Share.Market by PhonePe, investors reacted to concerns over slowing discretionary technology spending and the growing uncertainty around monetisation of generative AI investments.
Jain noted that enterprises globally continue to prioritise cost-optimisation projects over high-margin consulting assignments, while concerns persist that AI-driven efficiencies could eventually pressure traditional headcount-based revenue models.
From a technical perspective, he said the Nifty IT index has broken below key support levels and is now trading under its 50-day and 200-day moving averages, indicating that the near-term trend remains weak despite oversold conditions that could trigger short-term rebounds.
Broader Markets Show Resilience
Despite weakness in large-cap technology stocks, broader markets remained relatively resilient. The Nifty Midcap 100 gained 0.22%, while the Nifty Smallcap 100 rose 0.42%.
Defensive and utility-oriented sectors attracted buying interest. Nifty Pharma advanced 0.73%, BSE Healthcare gained 0.76%, BSE Telecom rose 1.59%, BSE Capital Goods climbed 1.11% and BSE Power added 1.02%.
Meanwhile, Nifty Realty declined 1.01% and Nifty Oil & Gas fell 1.18%.
Nifty Holds Above Key Level
Vinod Nair, Head of Research at Geojit Investments, said investors booked profits after the recent rally as sentiment weakened following the unexpected cancellation of peace talks between the US and Iran.
He added that concerns over discretionary technology spending, a delayed southwest monsoon and geopolitical uncertainty are likely to keep investors cautious in the near term. However, comfortable crude oil prices and expectations of an earnings recovery in the second half of FY27 continue to support a buy-on-dips approach.
Nilesh Jain, VP and Head of Technical and Derivative Research at Centrum Finverse, said the Nifty snapped its five-session winning streak but managed to close above the crucial 24,000 mark and remained above its 50-day moving average of 23,840.
He noted that momentum indicators continue to remain supportive, with the MACD maintaining a buy crossover and the RSI holding above 60. According to Jain, the broader trend remains positive and the index could gradually move towards the 24,400 level in the near term. He also highlighted that India VIX declined 13% during the week to settle below 13, which could further support market sentiment if volatility continues to moderate.
