Indian IT shares extended their losing streak for a sixth straight session on Friday, dragged down by weak global sentiment after Accenture’s quarterly update and rising concerns over US H-1B visa fee hikes. 

Nifty IT index has fallen almost 7.5% over the past six trading days, wiping out nearly Rs. 1.8 lakh crore in market value for its constituents.

Sector-Wide Decline

All ten members of Nifty IT index ended lower. Wipro was the steepest intraday laggard, slipping 2.05%, followed by Infosys, HCLTech, Tech Mahindra, LTI Mindtree, and Coforge, which each shed more than 1%. Smaller losses were seen in L&T Tech, Persistent Systems, and Mphasis.

Weekly, Coforge plunged 13.58%, while Mphasis lost 10%. Persistent Systems, Tech Mahindra, TCS, and Wipro were down over 7% each, whereas Infosys, HCLTech, and L&T Tech saw declines of 4% or more.

Accenture’s Impact

The sell-off came after US consulting major Accenture reported Q4 revenue growth of 1.5%, in line with guidance but moderating compared to earlier quarters. For FY26, Accenture projected 0.5-3.5% organic growth, signaling subdued demand in global IT services.

Brokerages pointed out that Accenture’s cautious outlook may be reflected in Indian IT firms’ September quarter performance, which is expected to remain muted except for seasonal benefits. 

Motilal Oswal noted that while valuations of top IT companies have corrected to near 10-year averages, a meaningful re-rating depends on the next technology cycle and stronger earnings upgrades.

Yes Securities pointed out that Accenture's business remained resilient in BFSI (which rose by 12%) and North America (which saw growth of 5%), with cloud and security being drivers of growth. This gives positive prospects for Indian companies like Infosys and Wipro that have meaningful exposure to these verticals.

H-1B Visa Fee Concerns

Adding to pressure, the US government has established a one-time $100,000 fee for all new H-1B visa petitions submitted for foreign workers outside of the US. This move is clearly aimed at protecting American labor, and could raise costs for Indian IT exporting firms, who often rely on onsite resources.

Analysts believe limited near-term impact as existing visa holders and renewals would not change. However, Kotak Securities warned that if companies have to resort to the use of subcontractors or experience wage inflation, margins in a bear-case scenario may contract by 100-200 basis points.

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Outlook

Despite ongoing downtrend, analysts are positive on long-term outlook for Indian IT. The offshore delivery models, different service lines, and growth in cloud and cybersecurity areas are positive indicators of growth. However, until visibility improves with global demand and clarity around visa policy, IT stocks will likely remain volatile.