Stock markets will be driven by RBI's interest rate decision, tariff-related developments, global trends and trading activity of foreign investors in this holiday-shortened week, analysts said.
Global firm Accenture's fourth quarter results prove that the worst is behind for the Indian information technology (IT) sector, said analysts on Friday (September 27). While the pace and the broadness of recovery is debatable, they said Accenture's results and revenue growth guidance for the next financial year (FY25) reduce downside risks for Indian IT companies.
IT major Accenture's second straight cut in its revenue growth forecast for FY23 suggests there is more pain ahead for the Indian IT sector, say analysts. Accenture has lowered the top end of its FY23 growth guidance in constant currency (CC) to 9 per cent from 10 per cent earlier. The firm, which follows a September-August fiscal cycle, expects a 2-6 per cent CC growth in Q4 of FY23 (June-August 2023) versus the 6-10 per cent prior guidance.
Despite a healthy March-May quarter (Q3FY22) show by global IT consulting firm Accenture, Indian IT companies shed up to 3 per cent on the National Stock Exchange (NSE) on Friday as analysts continued to highlight medium-term pain points for the sector. The Nifty IT index settled 0.9 per cent lower on Friday, as against a 0.9 per cent rise in the Nifty50 index. According to analysts at ICICI Securities, Accenture's Q3 saw moderation in year-on-year growth rate across verticals and US regions, which signals at likely normalisation in revenue momentum for Indian IT services going forward.
Morgan Stanley has increased the target prices of certain information technology (IT) stocks by as much as 29 per cent, anticipating an improvement in earnings in the near future. Within the IT and engineering research and development (ER&D) services sector, it is now more optimistic about growth and margin estimates for 2024-25 (FY25).
The top 25 global technology (tech) firms, including Apple, Microsoft, Amazon, Tencent, Samsung, Oracle, and Accenture, collectively lost over $600 billion in market capitalisation (m-cap) during the July-September quarter (third quarter, or Q3) of calendar year 2023 (CY23), reveals a recent report by GlobalData, a London-based analytics and consulting company.
The first quarter results (Q1FY25) of Indian IT services hint towards better fiscal growth than the preceding year, but as the management commentary said, "there is still some time for the industry to be firing on all cylinders." Among the majors-Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro-it is the Bengaluru-based Infosys that has performed better, which was also evident in its full-year revenue guidance.
Tata Motors was the biggest loser in the Sensex pack, skidding 1.77 per cent, followed by SBI, Power Grid, Tata Steel, Infosys, UltraTech Cement, Titan, Larsen & Toubro, Reliance Industries and Maruti. On the other hand, IndusInd Bank, Bharti Airtel, Asian Paints, NTPC, HCL Technologies, HDFC and Sun Pharma were the gainers.
The company's decision may impact new projects, which are likely to get delayed, said sources in the know. Among the IT players that work with Macy's are Accenture, Cognizant, Tata Consultancy Services (TCS), and Infosys. Macy's is among the top 5-10 clients of these companies.
JP Morgan has downgraded the Indian information technology sector to 'underweight' as it believes the heydays of the sector are over. Rising margin headwinds in the near-term and the revenue headwinds in the medium-term from a potential macro slowdown, Ankur Rudra and Bhavik Mehta of JP Morgan said in the report, will mean that the sector's earnings upgrade cycle is behind. "We see peak revenue growth behind us and earnings before interest and taxes (EBIT) margins trending down from inflation, mean revision.
With a market cap of $60 billion, exceeds Accenture and HP but trails IBM
iGate Patni is all set to compete with the likes of IBM, Accenture, Infosys and Congnizant.
Infosys CEO Salil Parekh has got a massive 88 per cent jump in annual remuneration to Rs 79.75 crore, making him one of the highest-paid executives in the country. The software services firm has sought shareholders' approval for the reappointment of Parekh as chief executive officer and managing director for a second five-year term beginning July 1. According to the company's annual report released on Thursday, Parekh, 58, took home a salary of Rs 71.02 crore in the fiscal year ended March 31, 2022.
IT companies have, in recent times, re-invested gains arising from a weaker rupee.
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However, a proposal to offer stock options to its 34,000 employees may fructify ahead of the IPO and a concept paper for this purpose has already been submitted to civil aviation ministry, he said. The two airlines, Air India and Indian, were merged in July-August this year and 12-18-months for full integration would mean that an IPO would not take place before mid-2009, Thulasidas hinted.
Stock market crash: TCS sheds $21 billion in market capitalisation, Infosys $7 billion and Wipro around $3 billion
Infosys Technologies has been inducted into the Global Most Admired Knowledge Enterprises (MAKE) Hall of Fame.
Elliott Capital's letter to Cognizant, detailing how the latter can reinvent itself, has many lessons for its India-listed peers like TCS and Infosys, says Akash Prakash.
Higher dividend taxes, falling valuations make alternative shareholder payment attractive.
Pricing pressure in traditional technology services and slow growth in emerging technologies may turn out to be the spoiler for Indian infotech companies, says Ayan Pramanik.
Ayan Pramanik and Shivani Shinde Nadhe report on the uncertainties that have dragged down shares of TCS, Tech Mahindra and HCL Technologies.
"In a year dominated by political chaos and bluster, it was a rare brand of steady -- even quiet -- leadership that won the day in the business world. And no one epitomises that brand of obsessively results-driven, team-based leadership more than our new No. 1 Businessperson of the Year," Fortune said.
Infosys is steadily trying to get back its lost ground under Sikka.
'After some time, they all want to know what is happening in their companies.' 'It is better they remain board members rather than talk outside.'
BSE Midcap and Smallcap indices ended in line with their larger counterparts and closed marginally up 0.2% and 0.4%, each
The Sensex ended higher by 245 points at 27,372 mark and the Nifty gained 66 points at 8,225.
TCS, Infosys and others are banking on automation to protect their turf in the US, but building a successful revenue model around it may prove difficult
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The indicative salary outlook for junior employees is Rs 1.45 lakh-Rs 3 lakh per annum, while for mid-management it is between Rs 12 lakh-Rs 30 lakh per annum
The banking, oil and metal sectors were the top sectoral losers on the BSE, while IT stocks rendered support at lower levels.
Whatever happens to WPP, the marketing communications business will no longer be the same again, says Sreekant Khandekar.
The 30-share Sensex ended up 1 point at 27,459 and the 50-share Nifty ended down 1 point at 8,341.
India's IT/BPO story isn't over yet, believes Ganesh Natarajan.
India's IT/BPO story isn't over yet, believes Ganesh Natarajan.
India Inc is shying away from investing in digital technologies.
Tambaram, a suburban area of the capital city has borne the brunt of the torrential rains, with areas beyond 2-3 km outside of its station left inundated, cutting it off from rest of Chennai.
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