Stocks of IT companies fell sharply
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Share Market: The Indian stock market today seems to be in a recovery mood after a sluggish start. At 11.30 am, Sensex was trading at 72,773.89, up 0.18 percent or 132.70 points. Whereas, Nifty is trading at 22,067.70, up 0.25 percent or 55.75 points. However, even amidst this rise, the IT index on Nifty is down by 648 points. Earlier during trading at 9.30 the index had fallen to 1198 points. Meanwhile, the New York Stock Exchange (NYSE) But the maximum decline of 9.31 percent was seen in the stock of Accenture. Along with this, the shares of Wipro and Infosys are also falling in the Indian market.
Why did Accenture’s stock fall?
IT service provider Accenture has released estimates of cut in its revenue. Earlier, the company had released an estimate of revenue growth of 3 to 5 percent. Which is now only one to three percent. The company says that it is struggling with the slowdown in its IT and consulting services. However, similar situation persists in the global market also. Due to this, layoffs and hiring freezes are being seen. After this news, Wipro, Infosys, Tata Consultancy Services (TCS) and HCL Technologies, which are among the big companies of India, have seen a decline. A decline of more than four percent has been seen in the stocks of HCL Tech, Mphasis and Persistent Systems.
Also Read: Interarch Building Products is coming up with IPO soon, the company has submitted documents to SEBI.
What is the expert’s opinion?
Morgan Stanley said that Accenture’s growth rate cut has increased the market’s concern. Along with this, there is concern over the pace of revenue collection for Indian IT companies. Whereas, Nuvama Institutional Equities said that there has been some negativity in Indian IT services firms due to Accenture’s cut. Although this is not much. He further said that we believe that FY25 Street estimates for Indian IT companies have been adequately rationalized. Whereas, there is a downgrade risk in the current level. Let us hope for a positive trend in this area.
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