TCS, Infosys lead 3% fall in Nifty IT; here's an Accenture connection

Nifty IT in Wednesday's trade was down 2.7 per cent even as the market continued to trade with minor gains ahead of the crucial Fed rate decision later today. All the 10 constituents of the index traded in the red, with the highest drag of over 5 per cent seen in Mphasis.

The drag comes as Accenture stock last closed with a loss of up to 5 per cent in the previous day's trade as the consultancy and business strategy major is projected to defer promotions of most staff by six months amid weak outlook.

This is amid a challenging environment facing the consulting industry. Now as against the usual norm of promotions being announced in December, promotions shall be granted in June.

Last week, the Dublin-based technology in an internal blog last week told employees that it will announce bulk promotions in June as against the December month. As per reports, the client spending budget as well as demand will be well estimated by December.

Given the macroeconomic conditions, inflation and elections, there is a possibility of impact on the growth of Accenture, added Citi.

Atul Parakh, CEO of Bigul said, Nifty IT falls steeps contributing to market volatility. The fall could be attributed to several reasons such as recent sell-off made in IT stocks, concerns over interest rate cuts , geopolitical tensions and concerns over economic growth and expecting changes of commodity prices."