Indian IT Stocks Gain As Accenture’s Growth Guidance Hike Boost Sentiment

Analysts expect Accenture Plc’s growth guidance hike and deal wins to boost the demand outlook for the Indian tech peers. They prefer Infosys Ltd. the most among large-cap Indian IT firms.

The New York-listed firm – which follows the September-August fiscal – reported revenue of $ 15 billion, up 28% year-on-year in constant currency, in the quarter ended February. That compares with the $ 14.66-billion estimate.

  • The company reported record deal booking at $ 19.5 billion, up 22% over the year earlier.

  • It raised the revenue growth guidance for the full year to 24-26% from 19-22% forecast earlier.

  • It revised EPS estimate to $ 10.61-10.81 from the earlier forecast of $ 10.32-10.60. The Bloomberg consensus projection was at $ 10.58.

That aided the investor sentiment back home. The Nifty IT Index gained, led by Wipro Ltd., in an otherwise volatile market.

Analysts, however, see attrition and margin pressure as persistent challenges for the Indian IT sector.

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