Shares of Infosys and Wipro took a hit on the New York Stock Exchange (NYSE) on Thursday, reacting to Accenture’s latest earnings report. The American Depository Receipts (ADRs) of Infosys dropped 3.5% to $17.9, while Wipro’s ADRs slipped 3.2% to $2.79. This decline came despite Accenture raising the lower end of its full-year revenue forecast.
What triggered the drop?
Accenture, a global IT services giant, released its second-quarter earnings, raising the lower end of its full-year revenue forecast and narrowed the range. The company now expects annual revenue to grow between 5% and 7%, slightly higher than its earlier projection of 4% to 7%.
However, market analysts had anticipated a more optimistic number, closer to 5.7%.
The underwhelming guidance created a ripple effect, leading to sell-offs in Infosys and Wipro ADRs.
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Accenture’s earnings report is often considered a bellwether for the IT industry, especially for Indian tech firms that generate a major portion of their revenue from global IT services.
Infosys ADRs closed at $17.9, down 3.6%, while Wipro ADRs slipped to $2.79, marking a 3.2% decline.
Back home, share price of Infosys on the BSE ended 1.74% higher at Rs 1,614.15 after touching an intraday high of Rs 1,631. Wipro’s share price saw a modest 0.83% gain, closing at Rs 267.95.
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