Nifty IT index gains 1.6% despite Accenture's cautious outlook; what's driving the rally?

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Also Read: Rupee appreciates 4 paise to trade at 83.14 against the US dollar It expects second-quarter revenues to be lower than the preceding three-month period, projecting a range of $15.40 billion to $16 billion or negative 2% to 2% in local currency. However, it maintained its full-year revenue growth guidance in the range of 2% to 5% in local currency.

"ACN’s performance and commentary are broadly in sync with its Indian peers, suggesting no material improvement in the demand environment with macro uncertainties persisting. NIFTY IT has rallied 9% in the last month, with the majority of this rally coming after the Fed’s dovish stance on rate hikes, post-easing inflation data, and likely trajectory." "Stable macros and dovish stance reduce the risk to our/consensus FY25 estimates of high single-digit revenue growth in Tier-1 companies, which builds some improvement in discretionary spending.

We believe large caps offer a better risk reward compared with mid-caps. Our pecking order is INFO, WPRO, TECHM, HCLT, LTIM, and TCS among Tier-1 companies," said brokerage firm Emkay Global Financial Services.

Also Read: 2023 in review: Over 40 Nifty50 stocks rose between 10% and 90%; Tata Motors, NTPC top gainers The Nifty IT index began today's trade at 33,492 points as compared to the previous closing of 35,345 but strengthened to reach 35,928 points by gaining 1.6%. All 10 constituents of the index are currently trading in the green, with Persistent Systems leading the way with a remarkable rally of 2.3% at ₹7,228 apiece.

Following closely are L&T Technology Services (up 1.9%), Wipro (up 1.9%), Tata Consultancy Services (up 1.5%), LTIMindtree (up 2.5%), Infosys (up 1.2%), MphasiS (up 0.9%), and Coforge (up 0.9%). Disclaimer: