Shares of Infosys Ltd fell to a 16-month low in six out of seven sessions on Thursday. The stock lost nearly 7.6% in September and is down about 27% this year.

The stock fell to a low of Rs 1,360 per share – a level last seen on May 25, 2021 – down as much as 0.8%. Meanwhile, TCS is down 6% this month, Wipro is down 4%, and Tech Mahindra is down 2%. Since the beginning of January, TCS has been down more than 19%, Wipro is down more than 44%, and Tech Mahindra is down 41%.

IT stocks are under pressure due to profit concerns and global economic uncertainty. All eyes are on Accenture’s FY23 growth prospects, which will set the tone for growth expectations across the IT services industry.

Accenture, whose fiscal year ends on August 31, will report its fourth-quarter earnings after Indian trading hours on Thursday. For Q4FY22, Bloomberg consensus estimates Accenture’s revenue of $15.38 billion, up 14.7% year over year, and within the guidance range of $15-15.5 billion (up 12-15.5% year over year). According to guidance, margins are expected to be 14.7% for the fourth quarter of FY22 and 15.2% for the full year of FY22.

Analysts expect a potential slowdown in some of the world’s largest economies could lead customers to cut back on discretionary spending. This could lead to slower growth momentum in IT services revenue. This situation could put short-term pressure on the Indian IT services industry. However, the analyst added that long-term IT spending remains resilient.

The top IT companies’ recent management comments and market expectations are that the September 2022 quarter will be a strong sequential quarter from a constant currency revenue growth perspective. However, the company appears less confident in 2HFY23 and has not given a clear, strong demand comment. The market hopes for no major negative surprise on H2FY23 revenue, although it may experience seasonal weakness.

The Fed’s recent hawkish rhetoric and expectations of policy tightening have increased the risk of a deep recession. Goldman Sachs has downgraded its ratings on TCS, Infosys and Tech Mahindra to sell, citing sharp cuts in its forecast for dollar revenue growth in the IT sector.