Indian IT stocks plummeted Friday, losing Rs 1.35 lakh crore in market value after Accenture's weaker-than-expected outlook fueled fears of AI disruption. Infosys led the decline with an 8% drop, as investors worry about generative AI's impact on traditional IT services.
Indian equity markets fell by 1% as geopolitical tensions between the US and Iran triggered an oil price rally. Investor sentiment was further dampened by disappointing Q4 earnings from Infosys and sustained selling by foreign institutional investors.
Tech Mahindra reported steady Q4 results with 0.6% YoY constant currency growth and 13.8% EBIT margin. The $370 million deal wins, including a significant Orange contract in Europe, are expected to drive revenue in FY27-FY28. Analysts maintain buy ratings but await management guidance for FY27 to assess growth prospects. The company declared Rs 36/share dividend, with payout exceeding 100% of PAT attracting investor interest amid sector-wide stock corrections of 30-50%.
