Shares of Indian IT services providers LTIMindtree Ltd., Wipro Ltd., Infosys Ltd., and Tech Mahindra Ltd. opened with gains on Friday (September 27) and are the top gainers on the Nifty 50 index after Accenture reported its fourth quarter results.

Accenture closed the fourth quarter with better-than-expected numbers. The company’s forecast for growth between 3% and 6% missed the midpoint of the analysts’ average estimate of 5.9% growth.

Brokerage firm Morgan Stanley wrote in its note that Accenture’s results and FY25 guidance do not point to any material change in the environment but do confirm expectations of organic growth improving over the next 12 months.

“This is a sign of relief for the sector especially post the run-up in the last three to four months,” the foreign brokerage said.

Morgan Stanley views Accenture’s results as neutral to slightly positive for India IT sentiment on account of:

a) commentary around broad-based improvement in growth,

b) 20%+ booking growth year-on-year,

c) organic growth in Q4 became positive as per the company,

d) the upper end of guidance implies a delta of almost 400 bps on revenue growth between FY24 and FY25.

Another brokerage Nomura said that Accenture’s organic growth guidance for FY25 is projected at 0-3%, compared to a decline of 1% in FY24.

The FY25 revenue growth forecast of 3-6% factors in over 300 basis points of inorganic growth.

The foreign brokerage said the company’s order bookings remained strong, fueled by large-scale projects. The generative AI (GenAI) opportunity continues to evolve.

It expects growth to bottom out in FY25.

Nomura has issued ‘Buy’ calls on Infosys, Wipro, and Cognizant Technology among large caps. The brokerage also sees potential in mid-cap firms like eClerx Services.

The brokerage had a ‘Reduce’ recommendation on companies like LTIMindtree, Mphasis, and L&T Technology Services.

Indian IT stocks are the top five gainers on the Nifty 50 index today, with LTIMindtree leading with a surge of 3%, while Tech Mahindra, Infosys, and Wipro shares are trading with gains of over 2% each.