Indian IT stocks may fall on earnings worries after Accenture flags elusive client spending

 Indian IT stocks may fall on earnings worries after Accenture flags elusive client spending

Retinitis Less than 1 min read

CNXIT  +1.25%

ACN  −7.26%

WIPRO  +0.87%

INFY1!  +1.50%

** India's IT companies 

CNXIT

, down 15.4% in January-March and set for worst quarter since June 2022, could see further pain, multiple brokerages say

** Global IT consultancy firm Accenture 

ACN

 reported in-line revenue in December quarter on Thursday and flagged constrained discretionary spending due to elevated macroeconomic uncertainties

** Accenture shares fell 7.3% in Wall Street overnight; the U.S.-listed shares of Wipro 

WIPRO

 and Infosys 

INFY1!  lost 2.3% and 2.8%, respectively

** Emkay says earnings of Indian IT companies could be at risk; adds, underperformance of IT index over Nifty 50 

NIFTY

 in 2025 is due to worries of "another year of missing anticipated growth acceleration"

** Ambit sees pain continuing for the sector, forecasts IT companies to post pre-COVID-19 level growth, margins and cash generation

** Jefferies says Accenture's growth guidance for H2FY25 (H1FY26 for Indian IT cos) poses downside risks to consensus growth assumptions

** IT index down 1.7% in March vs 4.8% rise in Nifty 50