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Indian IT Stocks Rise on Positive US Earnings Report
Shares in major Indian IT firms such as Infosys, Wipro, and Tech Mahindra were up significantly on Friday, with some climbing 4%. It was after a good earnings report coming from global consulting firm Accenture based in the US.
Key movers of the day are as follows. Bharat Petroleum Corporation Ltd. topped the chart by gaining 6.64% at ₹368.00. Second in rank was Sun Pharmaceutical Industries Ltd., which gained 2.89% to ₹1953.25. Hindalco Industries Ltd. got a good gain of 1.97% at ₹749.05. A moderate gain of 1.64% to ₹1813.10 marked HCL Technologies Ltd. Eicher Motors Ltd. rose by 1.52% close ₹5070.00. NTPC Ltd. again rose to 1.42%. The price of ₹440.75 is available. Last but not the least, Shriram Finance Ltd. rose marginally to 0.05%. It closed at ₹3630.15. In general, the market reflected positive momentum across various sectors.
Accenture's Strong Showing Raises Hope
Apart from crossing market expectations, Accenture has also boosted revenue guidance for FY25 to 3-6%. This event has surged the confidence boost in the minds of investors related to the impending IT growth of India.
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Market Experts Predict Growth for Indian IT
Brokerage firm appears to understand something about the outlook in Indian IT: growth is likely to bottom out in FY25, but this might still be too slow to materialize as discretionary spending turns out to be still a few quarters away. Large-cap IT firms would then face better revenue of 7.9% by FY26 from a 3.6% estimate for FY25.
Infosys and other IT Firms Steer the Way
Shares of Infosys increased as much as 4% during early trade, reaching a high of Rs 1,974.60. Wipro, LTIMindtree, Coforge, and Tech Mahindra similarly gained between 3-4%. They all are looking good at a broad level in the IT sector.
Analysts undeterred by short-term revenue fluctuations
The weakness risk for Indian IT firms on the revenue growth front during the next quarters is not something on which Motilal Oswal would have too many sleepless nights. They expect these variations not to significantly alter the market expectations or valuations. The big factor is going to be the corporate budget decisions for 2025, which are likely to be crystal clear post Q3 FY25, on the demand front.
A much-needed glow around the Indian IT sector
Accenture's report did reflect 2% year-on-year growth in FY24, with 3% coming from acquisitions. It is a positive development that consulting and outsourcing services are expected to go up, which will work well for Indian IT firms as such an indication may signal a revival of discretionary spending.
With inputs from agencies
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