Indian IT Stocks Rally After Strong AI Earnings From Global Giant Accenture

Accenture reported fourth-quarter revenue growth of seven percent in constant currency, lifting US-listed shares of Indian IT companies Infosys and Wipro in overnight trading. The global tech firm's full-year revenue growth reached five percent, beating its earlier forecast of three to four percent. For financial year twenty-twenty-seven, Accenture guided for constant-currency revenue growth between three and six percent.

Bookings And AI

The positive market reaction follows a sharp drop in the Nifty IT index, which fell eleven percent in September as the worst-performing sectoral index for the month. LTM shares dropped about thirteen percent, while Tata Consultancy Services fell about twelve percent. Wipro and Infosys dropped about ten percent each, and Mphasis fell nine percent. Coforge declined seven percent, while L&T Tech and HCL Technologies slipped six percent. Persistent Systems and Tech Mahindra fell more than five percent. Accenture recorded one hundred forty-one bookings worth more than one hundred million dollars during the quarter. Total new bookings reached twenty-two billion four hundred million dollars, marking a four percent increase from the previous year. More than four hundred clients started advanced artificial intelligence projects during the financial year, which included nearly one hundred new clients in the fourth quarter. Accenture Chief Executive Officer Julie Sweet stated that opportunities related to artificial intelligence remain greater than the impact of artificial intelligence efficiencies in the business.

Outlook

Despite the positive signals, brokerages advise caution regarding Indian IT stocks. Choice Broking expects financial year twenty-twenty-seven to remain a subdued growth year due to pricing pressure and sluggish discretionary spending. Nomura noted that while artificial intelligence drives client productivity gains, the resulting deflationary force is offset by incremental work and broader project scope. Choice Broking prefers Tier-One names like TCS and Tech Mahindra, along with mid-cap firms Coforge and Mphasis. Nomura maintains buy ratings on Infosys and Cognizant among large caps and Coforge among mid caps.

Context

Accenture often serves as an early indicator for technology spending trends across global enterprises. When large multinational tech firms report strong enterprise bookings and wider adoption of new tools, investors closely watch Indian outsourcing firms for similar ripple effects. However, regional software exporters continue to navigate tight client budgets and pricing pressures even as new technology demand gradually builds.