Wipro’s American Depositary Receipts (ADRs) fell nearly 6% in overnight trading. This decline followed a lowered annual revenue forecast from IT services giant Accenture.
The sell-off impacted other Indian IT firms, with Infosys ADRs dropping as much as 10%.
Accenture narrowed its full-year revenue growth guidance to a 3-4% range. This outlook is down from the previous growth forecast of 3-5%.
The company cited cautious enterprise spending on discretionary technology projects for the revision. This weaker outlook triggered investor concerns regarding near-term demand for the entire IT services industry.
The sentiment led to a broad-based sell-off in technology stocks across both US and Indian markets.