Infosys, Wipro ADRs end with gains of up to 4% post Accenture results, can Indian IT replicate the move?

The US-listed shares (ADRs) of Infosys Ltd. and Wipro Ltd. ended with gains of up to 4% on Thursday after IT services firm Accenture reported results for their quarterly fiscal.

While the Infosys ADR ended with gains of 3.4%, the ADR of Wipro ended 2.3% higher.

Shares of Accenture ended 7% higher overnight after the company’s revenue for the first quarter of financial year 2025 beat analyst expectations.

The bigger takeaway was the fact that the company raised its guidance for the full year to 4% to 7% from 3% to 6% earlier. This was the second quarter in a row that Accenture raised its guidance for the full year.
Accenture’s first quarter was aided by higher-than-expected revenue from large deals, which led to an upgrade in the full-year guidance. The company’s Banking, Financial Services and Insurance (BFSI) segment saw a strong 10% growth on a sequential basis during the quarter.

New bookings for the GenAI segment stood at $1.2 billion, a growth of 20% compared to the previous quarter. GenAI revenue for the quarter stood at $500 million.

However, the management in its commentary said that there has been no recovery in client spending, particularly in smaller deals as they continue to prioritise the large transformational deals.

The management also said that Europe as a geography continues to be more challenged compared to the US and that more visibility on client budgets will be available next month or by February 2025.

The results of Accenture puts the entire Indian IT basket into focus. The Nifty IT index is down over 2% for the week. The continued depreciation of the rupee compared to the US Dollar may further aid sentiment.

Select IT stocks, particularly Midcap IT names like Persistent Systems, Coforge and Oracle Financial Services recovered from the lows of the day and ended at a record high in what was otherwise a weak market.