American Depository Receipts of Indian tech companies, Infosys and Wipro, fell on Wall Street after Accenture cut revenue growth guidance for the current financial year – FY24. The global IT giant slashed the forecast on the back of an uncertain economic environment, which is leading to lower demand and reduced spending on consulting services.
ADRs of Infosys fell 3.83% and closed trading at $18.20 on Wall Street while that of Wipro fell 1.68% to finish at $5.850. Also, the ADRs of WNS Holdings fell over 4% to close at $52.44, the lowest among its Indian ADR peers. Sify Technologies fell 1.5% to get the last quote at $1.3 an ADR share.
Accenture expects revenue growth for the year to be in the range of 1% to 3% from 2% to 5%, which it forecasted earlier. The company was seeing muted demand for IT and consulting services, further pushed by high-interest rates.
Accenture posted revenue of $15.80 billion, a tad lower than what analysts expected – $15.84 billion.
Nifty IT to remain in focus in India on March 22. The index had been trading in the red after TCS’ parent pared a minor stake in the company. However, the sectoral index broke four day’s trading trend and was quoting in green on March 21.