At the time of writing the Nifty IT index was up 0.63%, with most IT giants such as Infosys, TCS, and Wipro trading in the green.
What Happened: India’s IT services industry has been under pressure this month amid the global banking crisis and other macroeconomic factors. However, Accenture‘s earnings result seem to have brought some investor confidence back. Accenture posting record order booking of $22.2 billion was seen as a huge positive by analysts. However, the 19,000 job cuts announcement did dampen the sentiment a bit.
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Morgan Stanley said that Accenture’s report brings more positives than negatives for the Indian IT sector. It expects the results to drum up some positive sentiment to drive the stocks that have been underperforming recently. It had LTIMindtree, Infosys, and HCLTech as its preferred picks in the sector.
Global brokerage firm CLSA also shared the same view and said that Accenture’s order bookings are a positive. It also added that with the recent downturn, IT valuations have turned reasonable. It prefers Infosys, HCLTech, and TCS from the sector.
Price Action: Here is how the IT companies fared in the early hours of trading on Friday.
Infosys was up 1.33% to trade at ₹1,392.75.
Wipro shares traded 0.40% higher at ₹363.
Shares of TCS were up 1% to trade at ₹3,155.25.
LTIMindtree was up 1% to trade at ₹4648.10.
Nifty IT index was up 0.63% to trade at 28,174.65.
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