From TCS to Infosys, IT stocks in focus after Accenture's Q3 results

livemint.com:

Accenture Q3 results: Revenue touches $16.5 billion, cash dividend at $1.29 per shareIndian IT stocks rose after Accenture's earnings, boosting hopes that the worst was behind and that the sector may see demand revival.Accenture's earnings are seen as a performance indicator of Indian IT players, and they are keenly observed by IT sector experts and investors. It also indicates the demand for IT services worldwide."Accenture maintained FY2024 guidance at the midpoint of 2 per cent with nearly 3 per cent inorganic component.

Accenture’s results show a few positive elements, such as strong booking growth and acceleration in year-on-year growth rates. This can lead to elation in Indian IT stocks," said Kotak Institutional Equities (Kotak Securities).Kotak pointed out that despite a muted demand environment over the past several quarters, Indian IT stocks have held firm.Indian IT sector has been under pressure over the last two years after the Covid-19 pandemic boost.The Nifty IT index has gained about 30 per cent in the last two years, compared with the Nifty 50's 54 per cent rise in the same period.However, over the last one year, the gap of underperformance has narrowed.