Contents
Infosys and Wipro ADRs Decline Following Accenture’s Revenue Forecast Amid AI Demand
Infosys and Wipro faced significant declines in their American Depository Receipts (ADRs) on Thursday, with a 3.6% drop for Infosys and a 3.2% drop for Wipro, as Accenture’s improved revenue outlook highlights growing demand for AI-driven services in the tech sector.
Lead: On Thursday, the American Depository Receipts (ADRs) of Indian IT giants Infosys and Wipro dropped by 3.6% and 3.2%, respectively. This decline follows Accenture’s optimistic forecast for its full-year revenue, driven by the rising demand for services that integrate AI-powered tools. Accenture’s insights indicate a growing trend in the tech sector, especially amid the ongoing digital transformation efforts across various global industries.
Key Drivers Behind ADRs Decline
– Accenture’s forecast underscores an increased demand for digital transformation and AI services.
– The company expects its annual revenue growth to rise to between 5% and 7%, up from the previous estimate of 4% to 7%.
– Despite the downturn in Infosys and Wipro’s ADRs, major US indices performed positively, with Dow 30 gaining 203.28 points.
Impact on the Domestic IT Sector
– Accenture’s performance could signal broader industry trends for Indian IT firms.
– The domestic earnings season kicks off in April with Tata Consultancy Services (TCS) expected to release its financial results.
– Analysts had originally predicted a revenue growth rate of 5.7% based on prior reports.
Market Performance Overview
– Infosys and Wipro’s ADRs were not reflective of the broader market, as the Dow 30 rose to 42,167.90, and the S&P 500 saw gains of 0.44%.
– The Nifty IT index concluded the day at 36,676.65, showing a 1.25% increase, indicating some resilience in the Indian market.
Understanding American Depository Receipts (ADRs)
– ADRs are U.S. bank-issued securities that represent shares in foreign companies.
– They provide U.S. investors with a way to buy and sell foreign stocks using U.S. dollars, expanding access to international markets.
Conclusion: The declines in Infosys and Wipro’s ADRs reflect investor sentiment following Accenture’s revised revenue outlook, signaling potential shifts in the technology sector. As the domestic earnings season approaches, all eyes will be on TCS’s results, which will provide further clarity on the trajectory of Indian IT firms amid evolving market demands driven by AI and digital transformation.
Keywords: Infosys, Wipro, Accenture, ADRs, revenue forecast, digital transformation, AI services, technology sector, Indian IT, TCS earnings
Hashtags: #Infosys #Wipro #Accenture #Technology #AI #DigitalTransformation #ITSector #EarningsSeason #ADRs
Source link
