IT Index Soars Nearly 2% On Accenture Optimism; Persistent System Top Gainer

The bluechip IT index soared over 1.5 per cent in the Friday trading session after the sector bellwether and U.S. peer Accenture predicted above-average yearly revenue growth on Thursday.

IT index traded at 35,426 levels with 1.4 per cent or nearly 500 points gain in the morning session on the National Stock Exchange (NSE). 

Accenture is a source of information for Indian IT companies regarding the demand climate in the US, which is their primary market and has been struggling with historically high interest rates.

Accenture Corporate Earnings

Accenture reported financial results for the quarter ended 31 May, surpassing analysts’ revenue growth expectations amid a backdrop of sluggish enterprise spending. 

The company reported quarterly revenue of USD 16.47 billion, slightly below estimates of USD 16.53 billion, yet showed resilience with an annual revenue growth projection of 1.5 per cent to 2.5 per cent. 

Accenture maintained a cautiously optimistic outlook, expecting continued revenue growth between 1.5 per cent and 2.5 per cent for the fiscal year.

Nifty IT Gainers

Among Nifty IT peers, Persistent Systems claimed the top position with 2.4 per cent gain followed by more than 2 per cent gain in LTI Mindtree and Coforge.

Infosys, Larsen & Toubro Technology and TCS also traded more than 1 per cent higher. Overall, all the ten stocks in the index traded in green.

Due to tepid demand and higher interest rate environment, IT stocks also remained muted in 2024 so far. IT index has delivered negative 0.2 per cent year-to-date (YTD) gain against the 8.2 per cent YTD gain of benchmark index, Nifty 50.