HSBC has maintained a neutral to slightly positive view on Indian IT services following Accenture’s Q2FY25 results and 2H guidance. According to the brokerage, Accenture’s commentary reflects an unchanged demand environment, with IT services continuing to outperform consulting.
The global IT major’s management also noted that there has been no material deterioration in discretionary tech spending in recent weeks—a signal that could bode well for Indian IT companies that rely on stable client budgets and ongoing project pipelines.
HSBC emphasized that the overall read-through for Indian IT is broadly in line with the outlook seen in December 2024 (Q1FY25), when demand had shown signs of stabilization after a period of softness.
The brokerage expects the steady guidance and commentary to support a cautiously optimistic sentiment across Indian IT majors like Infosys, TCS, HCLTech, and Coforge. However, with no material upgrades in demand expectations, the sector’s re-rating may remain gradual, depending on key vertical performances, especially BFSI and manufacturing.
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