On June 19, the Indian share market opened with substantial losses, reflecting a downturn across key indices. The Sensex plunged by 696 points, trading at 76,713, while the Nifty slipped 200 points to 23,974. The Information Technology (IT) sector bore the brunt of the sell-off, with the Nifty IT index plummeting by over 5%. This market slump left many investors questioning the cause, especially given recent positive developments like the Iran-US agreement and a drop in crude oil prices, which typically support market sentiment.
Accenture's Woes Trigger Global IT Sector Jitters
The primary catalyst for this widespread market weakness was the dramatic fall in shares of the global IT behemoth Accenture. Overnight, Accenture's stock tumbled by approximately 18% after the company slashed its revenue growth projections for FY26. Additionally, Accenture issued a warning about business pressures originating from West Asia (Middle East). This development had a direct ripple effect on the American Depositary Receipts (ADRs) of various Indian IT companies, exacerbating the fragility within the domestic IT sector. Investors are now increasingly concerned that the recovery in global technology spending might remain sluggish for longer than anticipated.
Detailed Look at Accenture's Performance and Outlook
Accenture's third-quarter (Q3) revenue stood at $18.7 billion, which was largely in line with market estimates. The company's earnings per share (EPS) even surpassed market expectations. However, the decision to revise down its FY26 revenue growth forecast overshadowed these positive figures. Accenture attributed this revised outlook to persistent weak demand and ongoing business challenges in the Middle East region. Furthermore, new order bookings for the quarter also saw a decline, dropping to $19.3 billion from $19.7 billion recorded in the same period a year ago. These combined factors fueled investor apprehension, directly leading to the significant plunge in Accenture's share price.
Mixed Signals from US Markets
In contrast to the Asian market's performance, the US share market demonstrated a robust recovery on Thursday. This uplift followed the US central bank, the Federal Reserve (Fed), deciding to maintain current interest rates after its Federal Open Market Committee (FOMC) meeting. While rates were held steady, the Fed did signal potential rate increases in 2026. Against this backdrop, the S&P 500 closed more than 1% higher at 7,500.58, and the Nasdaq also surged by over 1%. The Dow Jones Industrial Average registered a modest gain of 72.15 points, or 0.14%, closing at 51,564.70. However, it is important to note that US stock and bond markets will be closed on Friday, June 19, in observance of the Juneteenth national holiday.
