Nifty IT fell over 1% on Friday following Q3 results from Accenture, which had a negative effect on Indian IT peers. Although Accenture’s revenue growth met expectations, investors were concerned about the lowering of its FY23 revenue growth guidance band, which could drag on margins and pose risks to LTIM, TechM, Infosys and HCLT. With the sector still trading at a premium amidst worsening demand, Jefferies analysts have maintained a cautious stance. Nomura is concerned about the demand outlook for Indian IT services. Meanwhile, Motilal Oswal prefers TCS followed by HCL Tech and Infosys.
