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Accenture’s poor guidance expected to keep IT stocks under pressure

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IT stocks likely to remain under pressure due to poor guidance from Accenture

IT stocks are anticipated to face pressure following bleak guidance from Accenture, as per V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Market likely to consolidate without sharp moves, with volumes decreasing due to the upcoming truncated trading week.

Vijayakumar predicts that intraday dips will be bought due to strong cash positions of DIIs and pockets of value in largecaps like banking. However, sharp intraday upswings may see selling pressure from FIIs due to high US bond yields. Positive global market sentiment observed with record highs in US and Japanese markets.

Federal Reserve Chief’s message about the upward revision in expected US GDP growth for 2024 to 2.1% from 1.4% bodes well for the global economy. BSE Sensex trading at 72,761.72 points, up by 120.53 points, while heavyweight IT stocks such as Wipro, HCL Tech, Infosys have dipped more than 2%.

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The article states that “IT stocks are likely to remain under pressure in view of the poor guidance from Accenture, says V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.” Market is projected to consolidate in the near-term with few trading days next week, leading to decreased volumes.

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