Accenture: The American Depository Receipts (ADRs) of Indian tech majors Infosys and Wipro took a hit on Wall Street following Accenture’s decision to revise its revenue growth guidance for the current fiscal year, FY24. This adjustment by the global IT behemoth was prompted by an uncertain economic landscape, resulting in decreased demand and diminished expenditure on consulting services.
Infosys‘ ADRs dropped by 3.83%, concluding trading at $18.20 on Wall Street, while Wipro‘s ADRs saw a 1.68% decline, settling at $5.850. Additionally, WNS Holdings’ ADRs experienced a significant decrease of over 4%, closing at $52.44, the lowest among its Indian ADR counterparts. Sify Technologies also registered a 1.5% decrease, ending with the last quote at $1.3 per ADR share.
Accenture now anticipates revenue growth for the year to be within the range of 1% to 3%, down from its previous forecast of 2% to 5%. The adjustment comes as the company observes subdued demand for IT and consulting services, exacerbated by elevated interest rates.
Accenture reported revenue of $15.80 billion, slightly below analysts’ expectations of $15.84 billion.
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On March 22, Nifty IT is poised to retain its spotlight in India. The index had initially dipped into negative territory following a minor stake reduction by TCS‘ parent company. However, breaking its four-day downward trend, the sectoral index rebounded and traded in positive territory on March 21.
