Monday, June 2, 2025
HomeStocksIT stocks: IT stocks look set for recovery with pick-up in outsourcing...

IT stocks: IT stocks look set for recovery with pick-up in outsourcing demand

-

[ad_1]

ET Intelligence Group: IT stocks have shown a gradual recovery over the past three months on hopes of a revival in the outsourcing demand from major markets of the US and Europe.

The BSE Infotech index has gained 15.9% during the period, the third highest following 20.9% return in the BSE Healthcare and 16.6% increase in the BSE FMCG indices. In addition, barring Wipro, which gained 6.5%, other top IT stocks including TCS, Infosys, HCL Technologies, Tech Mahindra, and LTIMindtree have earned double-digit returns during the period.

The upward revision in the full- year revenue and operating margin guidance by Accenture, the NYSE-listed larger global peer of Indian IT exporters, last week has made analysts more optimistic about a turnaround in the growth prospects of the sector.

IT Stocks Look Set for Recovery with Pick-up in Outsourcing DemandAgencies

While declaring inline numbers for the fourth quarter ended August 2024, Accenture raised the FY25 revenue growth guidance to 3-6% in constant currency from the earlier expectation of 1.5-2.5% growth, citing improving economic conditions and increased client engagements. It also upgraded the operating margin guidance to 15.6-15.8% from the earlier estimate of 14.8% for the full year.

Similar to the strong trend in new deal wins shown by Indian IT exporters over the past few quarters, Accenture reported $20.1 billion in new bookings for the fourth quarter. The order bookings for the full-year increased by 13% to a record $81.2 billion.

“We believe the guidance, deal bookings, and the overall commentary have turned the corner, which bodes well for the sector,” said Motilal Oswal Financial Services in a report. The brokerage added that the client spend behaviour is changing for the better which may result in the return of modernisations and discretionary projects.Axis Securities noted in a report that Accenture’s overall fourth quarter bookings were resilient, indicating robust demand despite prevailing uncertainties.

[ad_2]

Source link

LATEST POSTS

WitchSpin Casino: Daily ₱777 Bonus Explained

Online casinos attract players by offering exciting games and generous bonuses. One of the most popular features of WitchSpin Casino is its daily ₱777 bonus....

Gaming and Adventure Combined: The Ultimate Guide for Norwegian Tourists

For many Norwegian tourists, traveling is all about exploring new places, immersing themselves in different cultures, and seeking unforgettable adventures. But what if your journey...

Non-Disclosure Agreement for Customer Privacy Protection

In today's digital age, privacy concerns are more significant than ever, especially when it comes to safeguarding the personal and sensitive information of customers. Businesses...

How to Analyze Odds for a Spot Bet

The adrenaline rush of Spot Bet—placing wagers while the action unfolds—attracts countless sports enthusiasts seeking to capitalize on their real-time insights. Yet beneath this thrilling...

Most Popular

spot_img