Mumbai: The Indian stock market witnessed a sharp meltdown on Friday as a sudden reversal in sentiment erased gains from the previous five-session rally, with benchmark indices falling sharply and investor wealth declining across sectors.Accenture triggers IT-led selloffThe immediate spark for the market crash came from Accenture, the global IT services major, which cut the upper end of its FY26 revenue growth guidance and flagged weaker demand conditions.The update from Accenture rattled global technology sentiment and revived fears of:Slowing discretionary tech spending in the US and EuropeDelayed conversion of deal wins into revenueWeak recovery in global IT demand cycleThis triggered a sharp fall in Accenture shares, along with Indian IT ADRs, setting off a domino effect across Dalal Street.IT stocks lead the meltdownThe Nifty IT index bore the brunt of the selloff and quickly dragged broader markets lower.Nifty IT crashes intradayFell up to 6.43% (1,831 points) to 26,634Remained down nearly 5% during tradeWorst-performing sector of the dayHeavy losses across IT majorsInfosys: down 7.4–7.6%TCS: down 5.5–5.6%HCLTech, Tech Mahindra: down ~4–4.5%Wipro: down over 3%LTIMindtree, Mphasis, Persistent, Coforge: down 3–5%Midcap IT stocks also tumbled sharply, deepening the sector-wide correction.Frontline IT stocks hit multi-year lowsInvestor concerns intensified as several blue-chip IT stocks slipped to long-term lows:Infosys and Wipro hit 5-year lowsTCS fell to a near 6-year lowThis reflected rising anxiety over earnings visibility and weakening global demand outlook.Accenture-linked ADR shock amplifies panicThe fall in Indian IT ADRs after Accenture’s guidance cut intensified domestic selling pressure.Accenture shares plunged nearly 18% overnightInfosys ADRs fell about 10%Wipro ADRs declined over 3%Since ADRs reflect global investor sentiment, the selloff quickly transmitted to Indian markets.Foreign investors turn net sellersForeign Institutional Investors (FIIs) sold equities worth over ₹1,000 crore, reversing recent inflows.This renewed concerns over:Sustained foreign outflows in 2024–25India’s stretched equity valuationsRising dependence on domestic liquidityProfit booking after sharp rallyThe correction was also fuelled by profit booking after a strong rally:Sensex and Nifty had gained nearly 5% in five sessionsTraders used the rise to lock in gains near resistance levels, accelerating the reversal into a broader selloff.Weak global cues add pressureGlobal markets failed to support domestic sentiment:Asian indices traded lowerKospi and Hang Seng fell nearly 2%Weak US futures signalled cautionThis lack of external support deepened selling across Indian equities.Geopolitical risks and crude volatility persistDespite earlier optimism from easing tensions, global risks remain elevated:Middle East geopolitical uncertaintyCrude oil price volatilityInflation risk for import-dependent economies like IndiaThese factors continue to weigh on investor confidence.Structural concerns in IT sector deepenBeyond Accenture’s guidance cut, the IT sector faces multiple headwinds:Slower revenue conversion from deal winsClient delays in discretionary spendingBudget tightening in US and EuropeUncertainty around AI reshaping outsourcing modelsWhile AI is a long-term opportunity, near-term earnings visibility remains weak.Market outlook: Correction or deeper trend?Analysts say the selloff is a mix of external shock and fragile sentiment rather than a standalone event.Key triggers now under watch:US tech spending outlook post-AccentureFII flow directionUpcoming earnings seasonGeopolitical developments and oil pricesFor now, Accenture has acted as the catalyst, but the broader meltdown reflects a convergence of global slowdown fears, profit booking and foreign investor caution.