Accenture guidance delays hopes of demand pick-up for Indian IT: Analysts

Nirmal Bang analysts suggest investors use the gains to pare positions if overweight, especially in the tier-2 IT pack

At a time when the market is betting on a ‘higher for longer’ global interest rate view, Accenture’s (ACN) weak revenue forecast is a negative read-through for the Indian IT firms, according to analysts. 

The Dublin-based company sees its revenue growth at 2-5 per cent in constant currency (cc) for the financial year 2024 (FY24), below the pre-Covid levels of 5-8 per cent for FY17-20. 

The weak projection, thus, signals that slower demand is likely to persist this year, and any recovery is unlikely in the near-to-medium term, experts note. 

“ACN noted that the long-term technology spending trends remain intact,