Accenture guidance boost lifts Infosys, Wipro; IT stocks rally up to 4%

Shares of major Indian IT firms, including Infosys, Wipro, Tech Mahindra, and Coforge, surged up to 4% on Friday, following an upbeat earnings report from US-based Accenture.
Accenture not only exceeded market expectations for its Q4 results but also raised its revenue guidance for FY25 to a range of 3-6%.
The positive momentum from Accenture’s performance has bolstered investor confidence in Indian IT stocks, with expectations for growth in the sector improving.
According to brokerage firm Nomura, the Indian IT industry is likely to see growth bottom out in FY25. The firm anticipates a gradual recovery in discretionary spending, although it may take a few more quarters for a full rebound.
Nomura predicts revenue growth for large-cap Indian IT companies to improve significantly in FY26, forecasting a 7.9% year-on-year increase, compared to 3.6% in FY25.
During early trading, Infosys shares climbed as much as 4%, reaching a high of Rs 1,974.60 on the National Stock Exchange, making it one of the top gainers on the Nifty index.
Other IT firms, including Coforge, Wipro, LTIMindtree, and Tech Mahindra, also saw gains of up to 4%.
Motilal Oswal, in its recent analysis, expressed minimal concern about short-term revenue fluctuations for Indian IT companies in the upcoming quarter, believing that these variations are unlikely to affect market estimates or valuations significantly.
The brokerage said that the sector’s critical catalyst will come after Q3 FY25, when corporate client budgets for calendar year 2025 are finalized, providing a clearer picture of demand.
Accenture’s report highlighted 2% year-on-year growth in FY24, including a 3% contribution from inorganic acquisitions.
The company’s outlook for consulting and outsourcing services suggests further growth, a development that is particularly positive for Indian IT firms, as it signals a recovery in discretionary spending.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that Indian IT stocks are expected to respond positively to Accenture’s strong guidance, suggesting potential gains for the sector in the near future.