Indian IT shares gain on Accenture's strong performance
Published On: Friday, December 18, 2020 | By: Team KnowMyStock
Shares of information technology majors, including Infosys, TCS, HCL Tech, Wipro and Tech Mahindra, traded with gains on BSE on December 18 morning hitting their respective record highs after Ireland-based Accenture reported better-than-expected results for the quarter ending November 30. The Nifty IT index hit a record high of 23,408, up 2 per cent on the NSE in intraday trade. Accenture reported strong earnings and revenue growth, revised upwards revenue growth forecast for the full fiscal year of 2021 to 4 – 6 per cent from an earlier estimate of 2 – 5 per cent. Accenture's revenue for the quarter, at $11.8 billion and up 4 per cent on a year-on-year (YoY) basis was well above its guidance and street’s estimate. Infosys gained 3 per cent at Rs 1,193 and TCS rose 2 per cent to Rs 2,894., Larsen & Toubro Infotech, HCL Technologies, Wipro and Tech Mahindra from the Nifty IT index were up in the range of 1 per cent to 3 per cent.
Analysts at Motilal Oswal Securities and Prabhudas Lilladher see Accenture’s strong 1QFY21 performance as a positive for Indian IT Services. “We see Accenture’s 1QFY21 earnings and management commentary as a mere reiteration of the adaptability and resilience of its business model.We continue to form a positive-strand on Indian IT, led by positive trends on higher technology spending’s across global companies,”accelerated demand for cloud adoption the brokerage firm said in IT sector update.
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