TCS, Infosys to Wipro: IT stocks slump after Accenture results, Nifty IT dips 7.4% in six days amid H-1B visa fee hike
Indian IT companies, including TCS and Infosys, have seen declines for six consecutive days after Accenture's results and rising H-1B visa fees. The Nifty IT index fell 7.4%, costing constituents approximately ₹1.8 lakh crore in market cap amidst a challenging outlook for the sector.
Indian IT stocks, including TCS, Infosys, HCLTech, and others, faced their sixth consecutive day of decline on Friday following the release of results by US consulting giant Accenture after market hours in India and amid a sharp increase in US H-1B visa fees.
Over the last six sessions, the Nifty IT index has fallen by as much as 7.4 per cent. Meanwhile, in the last five sessions (till Thursday, September 25), the ten Nifty IT constituents collectively lost around ₹1.8 lakh crore in market capitalisation.
IT Stocks Performance
All constituents of the Nifty IT index traded in the red. Wipro saw the steepest fall of 2 per cent, followed by LTI Mindtree, Infosys, HCL Tech, Tech Mahindra, and Coforge, each down more than 1 per cent. L&T Tech, Persistent Systems, and Mphasis declined over 0.5 per cent each.
Meanwhile, over the past week, Coforge emerged as the top loser with a 12.6 per cent drop, followed by Mphasis at 9.75 per cent. Persistent Systems, Tech Mahindra, TCS, and Wipro lost over 7 per cent, while HCL Tech, Infosys, and L&T Tech declined more than 4 per cent.
Reasons Behind IT Stocks' Fall: Accenture Results
Accenture reported 1.5 per cent revenue growth in the fourth quarter, beating consensus estimates and reaching the top end of its guidance. For fiscal 2026 (September to August), Accenture guided for 0.5–3.5 per cent organic growth, slightly higher than the previous year’s 0–3 per cent forecast, excluding a 1–1.5 per cent impact from a slowdown in government consulting.
Brokerage Motilal Oswal noted that Indian IT services could mirror Accenture’s commentary, with the September quarter likely to be largely muted apart from seasonal gains. The firm added, “Valuations are now palatable, with top IT services stocks trading near their 10-year average P/E multiple and at a 13 per cent discount to their five-year average. A structural re-rating depends on a new technology cycle and meaningful earnings upgrades.”
Yes Securities highlighted that Accenture delivered strong Q4 results, with 4.5 per cent YoY revenue growth in constant currency, led by BFSI (12 per cent YoY) and North America (5 per cent YoY). The FY26 organic growth guidance of 1.5–4.5 per cent suggests moderation from FY25’s 4 per cent, with cloud, security, and industry-specific solutions remaining growth drivers. The brokerage added that cloud leaders like Infosys and cybersecurity specialists like Wipro are well-positioned to benefit.
H-1B Visa Fee Impact
Indian IT stocks have been under pressure for the past five sessions due to the recent H-1B visa rules introduced by the Trump administration. On September 21, US President Donald Trump announced a one-time $100,000 fee for new H-1B visa petitions for workers outside the US, aimed at protecting American jobs.
Experts note that while this introduces near-term cost pressures, companies with diversified delivery models and strong offshore operations are likely to absorb the impact without major disruptions.
Sumit Pokharna, VP of Fundamental Research at Kotak Securities, said, “The $100,000 one-time fee affects only new petitions and not renewals or current visa holders. The full impact may be seen in FY28. Companies may offset the costs through greater use of offshore and nearshore locations. In our bear case, onsite talent competition could cause 10 per cent wage inflation, affecting margins by 100–200 bps and EPS by 7–14 percent in FY27E. In the base case, firms may replace expiring H-1Bs with subcontractors at 20–25 per cent higher wages.”
Despite the recent slump, analysts remain confident that the long-term fundamentals of major Indian IT companies remain robust, supported by diversified operations, offshore capabilities, and emerging demand in cloud, cybersecurity, and industry-specific tech services.
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