Shares of IT majors such as TCS, HCL Technologies, Wipro, Infosys and Tech Mahindra rose up to 4% in early deals on Friday global IT major Accenture reported its fourth quarter earnings. In fact, HCL Tech, Infosys and Tech Mahindra shares approached their 52 week highs after the Nasdaq-listed IT services provider Accenture raised its annual revenue growth forecast to 3-6% for 2025, propelled by an improvement in the macroeconomic environment and US Fed’s recent interest rate cut.
Shares of HCL Technologies rose 2.38% to Rs 1827.25 on BSE, nearing their 52 week high of Rs 1828.60 reached on September 17, 2024. Market cap of the firm climbed to Rs 4.90 lakh crore.
Another IT stock Infosys climbed 4% to Rs 1,827.85, nearing its yearly high of Rs 1975.05 reached on September 2 this year. Market cap of the firm stood at Rs 7.97 lakh crore.
Third IT major to approach its 52 week high is Tech Mahindra. The stock rose 3.56% to Rs 1664 on BSE. It hit a 52 week high of Rs 1671.50 on September 17, 2024.
Wipro shares climbed 3% to Rs 558.55 against the previous close of Rs 541.90 on BSE. Market cap of the firm stood at Rs 2.85 lakh crore.
TCS shares climbed 2% to Rs 4378.45 against the previous close of Rs 4291.25 on BSE. Market cap of the firm stood at Rs 15.65 lakh crore.
Accenture posted in-line Q4FY24 results. Revenue at $16.4 billion grew 2.6 per cent YoY/5 per cent CC YoY, in line with Street’s estimate. Outsourcing services expanded 4.6 per cent YoY with consulting finally returning to growth. Overall bookings grew a solid 21.1 per cent YoY to $20.1 billion with Outsourcing bookings at $11.6 billion, surging 41.5 per cent YoY, said Nuvama Institutional Equities.
Brokerage firm Morgan Stanley said Accenture's earnings and FY25 guidance do not signal any material change in the environment. They confirm expectations of organic growth improving over the next 12 months.
"This is a sign of relief for the sector especially post the run-up in the last three to four months," the foreign brokerage said.
Analysts at Nomura have assigned a 'Buy' rating on Infosys, and Wipro in large-caps and eClerx Services in mid-caps.