Indian Markets Snap Five-Day Rally as IT Stocks Plunge on Accenture's Revenue Forecast Cut
The sharp decline in IT shares, triggered by global tech cues, overshadowed positive sentiment from easing crude prices and the US-Iran peace deal.
The story
Indian benchmark indices opened sharply lower on Friday, snapping a five-session winning streak, primarily driven by a significant sell-off in information technology (IT) stocks. The BSE Sensex tumbled 748.26 points, or 0.97%, to 76,661.72, while the NSE Nifty 50 shed 209.15 points, or 0.87%, to 23,958.85 in early trade, breaching the crucial 24,000 mark.
This downturn followed US bellwether Accenture's decision to slash its annual revenue growth forecast, leading to a cascading decline across global IT services and impacting Indian IT majors like Infosys and TCS. Infosys dived over 8%, and Tata Consultancy Services tumbled 6% in early trading.
This contrasts with Thursday's close, where Sensex rose 254.36 points (0.33%) to 77,409.98 and Nifty gained 82.30 points (0.34%) to 24,168, led by financial, pharma, and realty stocks. Foreign institutional investors (FIIs) were net sellers of ₹1,025.20 crore on June 18, while domestic institutional investors (DIIs) were net buyers of ₹3,516.81 crore.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 24,168.00 | +82.30 (+0.34%) |
| Sensex | 77,409.98 | +254.36 (+0.33%) |
| USD/INR | 94.36 | +0.14 (+0.15%) |
| India 10Y Yield | 6.8703% | |
| India VIX | 12.67 | -0.52 (-3.94%) |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Activity | -₹1,025.20 Cr (June 18, 2026) | Foreign institutional investors were net sellers in the cash segment. |
| DII Net Activity | +₹3,516.81 Cr (June 18, 2026) | Domestic institutional investors were net buyers in the cash segment. |
IPOs & the primary market
The primary market remains active with several SME IPOs. Riyaasat Lifestyle's ₹30.77 crore book-built issue opened for subscription on June 18, closing on June 22.
Anubhav Plast's ₹24 crore SME IPO is set to open today, June 19, and will close on June 23. Meanwhile, Liotech Industries' IPO, which opened on June 17 and closes today, saw its Grey Market Premium (GMP) at ₹51 on June 18, suggesting an expected listing price of ₹372, about 15.9% above its issue price of ₹321. Clay Craft India, Diksha Polymers, and Leapfrog Engineering Services IPOs, which opened on June 17, also close today.
Valuation watch — India & global
Amidst the current market volatility, particularly in the IT sector, valuation concerns persist. The hawkish stance from the US Federal Reserve, signaling potential rate hikes later this year, continues to influence global markets and investor sentiment.
While specific Nifty PE multiples for this week were not readily available, the market's reaction to global tech giants like Accenture trimming revenue forecasts highlights the sensitivity to external cues. The recent spike in India VIX, up 5.20% to 13.33 in early trade on June 19, indicates an uptick in investor anxiety, breaking a five-session trend of declining volatility. This suggests a cautious approach as global economic uncertainties remain a key factor for India's market valuations.
Monsoon watch
The southwest monsoon has stalled over southern Maharashtra, leading to a nationwide rainfall deficit of 41% between June 4 and June 18, with the country receiving only 42.6 mm against a normal of 72.2 mm. Central India is the worst-affected region, facing a 67% deficit.
This slowdown is attributed to five concurrent weather systems, including developing El Niño conditions and weak Madden-Julian Oscillation activity. Despite the overall deficit, the India Meteorological Department (IMD) forecasts heavy to very heavy rain in the sub-Himalayan districts of West Bengal for the next week. Conditions are expected to become favorable for the monsoon to advance into parts of Telangana, Odisha, Jharkhand, Bihar, and Chhattisgarh over the next four to five days.
What we'll be watching
- Reliance Industries Ltd (RIL) Annual General Meeting (AGM) today, June 19.
- US-Iran peace agreement negotiators are expected to meet in Geneva today, June 19.
- Anubhav Plast IPO closes for subscription on June 23.
- Liotech Industries IPO is tentatively scheduled to list on June 24.
- Nifty June 2026 Futures & Options (F&O) contracts expire on June 30.
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