Infosys hit a new high today at Rs.1787.50, HCL Tech too hit a high at Rs.1377 and Wipro at Rs.698.95, all three continuing to trade around the high levels. Mindtree also hit a new high at Rs.4732. Infact the BSE IT Index hit a new high today with 36 out of the 50 stocks in the green.
The reason for this surge in the IT stocks? Accenture. It is always been like this – the market always anticipates the earnings of the India IT sector based on the earnings of Accenture; it’s earnings are a harbinger of things to come.
The company, for Q4 (Aug – Sept year ending) posted a good 24% rise in revenue (YoY) at $13.42 billion while its full fiscal revenue rose 14% at $50.5 billion. The best part is that its guidance for Q1 is very positive which implies continued growth speed and the guidance for entire year too were way above street expectations - 12-15% revenue growth.
Based on these numbers of Accenture, the Indian markets expect the IT sector to do very well, with good traction seen in topline as well as EBIT margins.