Indian IT stocks, including major players like TCS, Infosys, and HCL Tech, are likely to be in the spotlight on Friday following Accenture’s impressive first-quarter earnings and an upgraded revenue outlook.
Accenture’s Strong Q1 Performance
Accenture’s Q1 revenue of $17.7 billion exceeded analyst expectations of $17.12 billion, driven by strong demand for its AI-powered solutions. These solutions are helping businesses optimize their operations. Additionally, the company reported new bookings of $18.7 billion, slightly higher than the $18.4 billion from the same period last year.
Raised Revenue Growth Outlook
Accenture also raised its annual revenue growth forecast to 4%-7%, surpassing its previous estimate of 3%-6%. This improved outlook reflects the company’s strong positioning in the market, driven by increased investments in AI technologies and digital transformation projects across industries.
Positive Reaction in Indian IT Stocks
In response to Accenture’s positive results, Infosys saw its American Depositary Receipt (ADR) rise by 3.58%, reaching $23.46. Similarly, Wipro’s ADR gained nearly 2.4%, closing at $2.7171. These gains highlight how positive sentiment around global IT service providers can ripple through the Indian IT sector.
Accenture’s AI Focus and Industry Impact
Accenture’s focus on Generative AI is becoming a key driver of its business. The company is leveraging AI to streamline operations across industries, from predictive maintenance in manufacturing to automating advertising workflows. As businesses continue to invest heavily in AI technologies and digitizing core processes, Indian IT stocks like TCS, Infosys, and HCL Tech are expected to benefit as they offer similar AI and digital transformation services.
Short-Term Setback for Indian IT Stocks
Earlier on Thursday, Indian IT stocks saw a significant pullback. The U.S. Federal Reserve’s hawkish tone weighed heavily on market sentiment. The Fed’s decision to cut policy rates by 25 basis points and signal only two rate cuts in 2025 (down from the expected four) caused uncertainty in global markets. As a result, the Nifty IT index closed 1.3% lower at 44,954.20.
Key Decliners in Indian IT Stocks
Among the major losers, LTIMindtree was the biggest decliner, falling 5.3%. Infosys finished the day at Rs 1,948.50 on the NSE, down by Rs 30.65, or 1.55% from the previous day. Wipro, on the other hand, closed flat at Rs 312.75.
Outlook for Indian IT Stocks
Despite the short-term setback, Indian IT stocks like TCS, Infosys, and HCL Tech are likely to benefit from the growing demand for AI solutions and digital transformation services. Accenture’s strong performance highlights the significant opportunities in this space, suggesting that Indian IT companies will continue to play a crucial role in the global IT services landscape.