IT stocks rise up to 3% after Accenture raises growth guidance; TCS, Infy up 1-2% as brokerages eye AI tailwind

Nifty IT

• Nifty IT index up 1.6% after Accenture's strong Q2 results
• Infosys, TCS, and other IT stocks gained 1-3 percent
• Accenture's improved guidance signals stable global IT demand

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Indian IT stocks traded higher on Friday, with the Nifty IT index gaining over 1.6 percent, as Accenture’s Q2 results -- particularly a raise in full-year growth guidance -- offered selective comfort on demand trends and deal momentum. Select IT stocks rose up to 3 percent, while heavyweights such as Infosys and TCS were also up by 1-2 percent each.

At 09:35 am, the Nifty IT index was up 1.63 percent at 29,046, broadly in line with gains across the market. Tech Mahindra rose 2.9 percent, Persistent Systems gained 2.7 percent, Oracle Financial Services advanced 2.7 percent, while Coforge, Infosys, Mphasis, HCLTech, TCS and Wipro rose between 1 percent and 2 percent. LTIMindtree declined 2.6 percent.

The trigger for the move was Accenture’s combination of top-end revenue growth, improved guidance visibility, and steady deal bookings. Brokerages interpreted this as stabilisation rather than deterioration in global IT demand.

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Accenture reported 8 percent revenue growth in dollar terms (4 percent in local currency) at $18 billion, at the top end of its guided range, and raised its FY26 revenue growth guidance to 3-5 percent from 2-5 percent earlier. It also said that excluding a 1 percent drag from US federal business, growth would be higher at 4-6 percent, suggesting underlying demand is somewhat stronger than headline numbers imply. New bookings rose 6 percent YoY in dollar terms to $22.1 billion, signalling continued deal flow despite macro uncertainty.

Nomura said the narrowing of Accenture’s growth guidance to 3-5 percent confirms that growth is not worsening further, with continued traction in financial services (FSI). This stability, along with steady bookings, supported sentiment for Indian IT. However, the brokerage cautioned that a broader recovery still hinges on macro improvement.

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Nuvama viewed the top-end revenue print and guidance upgrade as a “minor incremental positive,” arguing that these indicate resilience in demand and scope for higher investments and hiring as AI-led work scales up. HSBC pointed to management commentary that AI is driving market share gains for Accenture, framing AI as a net tailwind. It also noted that rupee depreciation of 4-5 percent could support Indian IT earnings.

On the other hand, Motilal Oswal said that while guidance was raised and deal wins remained healthy, client budgets for 2026 are expected to remain unchanged, keeping the read-through broadly neutral.

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