Accenture forecast lifts IT stocks, but outlook remains hazy

A stronger-than-expected revenue outlook from Accenture lifted several Indian IT stocks on Monday, although gains faded as the session progressed. TCS, Wipro, Persistent Systems and Mphasis rose, while Infosys and HCL Technologies ended lower.

The Indian IT stocks rally followed Accenture’s forecast of 3-6% revenue growth in constant-currency terms for fiscal 2027. The outlook was better than the 2-5% growth expected by the Street and offered some relief to investors concerned about weak technology spending and the impact of artificial intelligence.

TCS and Wipro gained around 2%, while Persistent Systems and Mphasis rose by as much as 3% during the session. Infosys and HCL Technologies, however, fell between 1% and 3%.

The Nifty IT index had gained nearly 1.6% earlier in the session but gave up most of those gains by the close. The mixed performance suggests that investors remain cautious despite the positive signal from Accenture.

The broader market performed better. The Sensex gained 472.77 points, or 0.7%, to close at 72,382.47, while the Nifty 50 rose 0.6% to 22,555.75. Banking, financial services and FMCG stocks also contributed to the market’s advance.

Accenture reported fourth-quarter revenue of $18.68 billion, up 7% year-on-year in constant-currency terms. New bookings reached $22.17 billion, providing another positive signal on technology demand.

The results were particularly relevant for Indian IT stocks because major domestic technology companies depend heavily on clients in the US and Europe. Accenture’s management also pointed to stronger conversion of smaller deals into revenue, a trend that could benefit Indian outsourcing companies.

However, analysts remain cautious. The sector continues to face pressure from discretionary spending changes brought by AI in traditional services and uncertainty about global economic conditions. So Accenture’s stronger outlook does not really mean a recovery for Indian IT companies.

The next test for Indian IT stocks will come with the September-quarter earnings season. Investors will focus on deal wins, revenue growth, margins and management commentary on technology spending.

The near-term outlook remains uncertain even after Accenture’s positive forecast. Whether Monday’s gains hold will depend on whether Indian IT companies can convert improving deal activity into stronger revenue growth in the coming quarters.

Accenture’s forecast has improved sentiment, but the sector still needs evidence of sustained client spending before the recovery can be considered durable.