IT stocks rise on positive read-through from Accenture results

Reuters Market Eye - Indian software companies gain as a better-than-expected rise in quarterly revenue by Accenture Plc sparks hopes of a robust demand environment, dealers say.

Tata Consultancy Services Ltd up 4 percent, Infosys gains 1.3 percent, Wipro up 1.9 percent, HCL Technologies rises 3.5 percent and Tech Mahindra surges 3.9 percent.

Accenture's net income rose to $881.8 million, or $1.26 per share, in the third quarter ended May 31 from $874.1 million, or $1.21 per share, a year earlier. Analysts had expected earnings of $1.21 per share.

Accenture reported a better-than-expected 7.5 percent rise in quarterly net revenue, led by a rebound in demand for its consulting services, where it competes with Indian IT companies.

 

(Full story http://in.reuters.com/article/2014/06/26/us-accenture-results-idINKBN0F126M20140626)

(Reporting by Abhishek Vishnoi)