Infosys, TCS, HCLTech shares shed up to 3% after Accenture results dampen sentiment

Shares of IT stocks, including TCS, HCL Tech, and Infosys, fell up to 3% following the release of Accenture’s second-quarter results for fiscal 2025. Accenture raised only the lower end of its revenue growth forecast, now expecting annual growth between 5% and 7%, compared to its prior forecast of 4% to 7%.

Infosys shares dropped 3%, hitting a day’s low of Rs 1,564.15 on the BSE in early trade, followed by TCS and HCL Technologies, which declined 2.7% and 2.5%, respectively.

A Reuters report noted that Accenture has benefited from large-scale projects in cloud migration, AI-led digital transformation, and data security. The US-based IT firm has secured major deals and formed partnerships with banks, telecom firms, and sports organizations.

Accenture results are an indication of the broader trends in the sector and are viewed as a harbinger of what lies ahead for the domestic IT sector. The domestic earnings season will begin in April with the announcement of Tata Consultancy Services' (TCS).

The company now expects annual revenue to grow between 5% and 7%, compared with its prior forecast of 4% to 7%. Analysts had expected revenue growth of 5.7%, according to data compiled by LSEG.

Also Read: IT stocks see highest foreign sell-off amid US uncertainty

Despite this positive outlook, Infosys and Wipro's ADRs closed lower in overnight Wall Street trading.

ADRs are tradable securities issued by a U.S. bank, representing shares in a foreign company. They enable U.S. investors to buy and sell foreign stocks on U.S. exchanges using U.S. dollars.

The Nifty IT index ended Thursday at 36,676.65, up 1.25%, making it one of the top-performing indices, second only to Nifty Auto.

The technology companies reported around 9% year-on-year growth in their Q3FY25 earnings, Motilal Oswal Financial Services said in a review note. The IT services companies presented a mixed picture in a seasonally weak Q3FY25 quarter, with a median revenue growth of 1.8% QoQ CC in 3QFY25 versus 2%, 1.2% and 0.7% in 2QFY25, 1QFY25 and 4QFY24, respectively.

Also Read:Stocks in news: Jio Financial, Adani Enterprises, Infosys, TCS, Bajaj Finance

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)