Indian IT Shares Fall After Accenture Warns of AI Risks

India’s technology sector, worth about $315 billion, has seen its stocks dip after a key player in the industry issued a cautious outlook. The company highlighted that artificial intelligence could shake up its traditional, people‑heavy service model and suggested a slowdown in the next fiscal year. Analysts from Morgan Stanley said investors already expected a modest start to 2027 but were hopeful for growth later in the year. However, they warned that this optimism might weaken once the company’s comments were taken into account.Goldman Sachs added to the concern, noting that unclear demand conditions could hurt the entire sector. Many businesses are tightening their budgets for tech projects, postponing non‑essential purchases and keeping a tight grip on spending. These broader economic pressures make it harder for IT firms to predict future revenue. Overall, the market reaction reflects a mix of fear that new technology could replace human work and worry about slower spending from customers. The industry’s future growth looks uncertain until clearer signals appear.