IT stocks in demand after Accenture raises profit guidance
Eight IT stocks rose by 0.35% to 3.06% at 11:15 IST on BSE after global rival Accenture on Thursday, 27 March 2014, raised its full-year profit forecast and the lower end of its revenue forecast.
Hexaware Technologies (up 3.06%), HCL Technologies (up 1.79%), Infosys (up 0.90%), CMC (up 0.88%), Wipro (up 0.81%), TCS (up 0.78%), Tech Mahindra (up 0.68%) and Oracle Financial Services Software (up 0.35%), edged higher.
The S&P BSE IT index was up 0.62% at 8,768.31. It outperformed the Sensex, which was up 0.05% at 22,224.62.
The S&P BSE IT index had underperformed the market over the past one month till 27 March 2014, falling 9.73% compared with the Sensex's 5.85% rise. The index had also underperformed the market in past one quarter, sliding 4.71% as against Sensex's 4.82% rise.
Accenture raised its profit forecast to $4.50 to $4.62 per share for the financial year ending 31 August 2014, from $4.44 to $4.56 per share. The company said it expects full-year revenue growth of 3-6% in local currency, compared with its previous forecast of 2-6%.
Accenture Plc also reported lower-than-expected results for the second quarter due to weak demand in its consulting business, which has been hit in the past few quarters as companies cut down on discretionary spending.
The company's net income fell to $722.3 million, or $1.03 per share in the second quarter ended 28 February 2014 from $1.19 billion, or $1.65 per share, a year earlier.
Powered by Capital Market - Live News