Indian IT Stocks See Early Gains After Accenture Posts Strong Q4 Results

Major Indian IT shares, including Tata Consultancy Services, Wipro, Infosys, HCL Technologies, and Tech Mahindra, saw heavy buying in early morning trade on Monday, 5 October. The movement followed strong fourth-quarter financial results from global consulting giant Accenture, which reported a year-over-year revenue rise of 6.3% to $18.7 billion. Accenture also posted fourth-quarter GAAP earnings of $3.29 per share, beating analysts' estimates by 11 cents, and expects fiscal year 2027 revenue growth between 3% and 6% in local currency.

Market Impact And Expert Views

The Nifty IT index initially jumped 1.6% during the session before dropping into negative territory due to profit booking. Earlier on 1 October, the index had closed 2.17% higher following Accenture's earnings announcement. Despite the positive numbers, the Nifty IT index remains down 25% for the year due to weak demand, macro uncertainties, and AI-led disruptions. Ajit Mishra of Religare Broking noted that while the guidance signals stable enterprise spending, recovery will likely remain uneven. Ravi Singh of Master Capital Services advised investors to focus on tier-2 firms and upcoming second-quarter results rather than chasing rallies. Emkay Global Financial Services added that Accenture's focus on AI investments and platform-led offerings could increase competitive pressure on Indian firms over the medium term.

Context

Accenture is a major global IT and consulting firm with a large workforce based in low-cost delivery networks like India, making its financial performance an important indicator for the domestic IT services sector. Outsourcing accounts for nearly half of Accenture's revenue, tightly linking its business trends to the broader offshore technology market.