MUMBAI: Indian shares snapped a five-day rally on Friday on Accenture-led IT weakness, while heavyweights HDFC Bank and Reliance Industries also fell.
The IT index dropped 3.7 percent to a three-year low, taking the wheels off the benchmarks’ rallies so far supported by lower oil prices after a US-Iran deal, and India’s moves to stabilise the rupee and curb foreign outflows.
The Nifty 50 fell 0.64 percent to 24,013.1, while the BSE Sensex shed 0.78 percent to 76,802.90, after gaining 4.3 percent and 4.8 percent, respectively, over the previous five sessions.
“Accenture has effectively confirmed that clients remain highly cautious with their wallets,” said Shashwat Singh, fundamental analyst at Bajaj Broking.
“Because Indian IT firms rely heavily on the same global pipeline for discretionary tech projects, Accenture’s forecast is a warning for the entire sector.”
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