India's IT stocks crawl back up after Accenture-led selloff; BoFA notes firmer AI outlook

Accenture

Mon 06:34

** Nifty IT .NIFTYIT index up 0.8%
** BofA says concerns over Accenture's costly M&A deals are likely unique to the bellwether co, not applicable to the broader sector 
** Notes that Accenture's weak quarterly sales forecast, lowered annual revenue guidance and softer managed services bookings are expected to weigh on Indian IT sector sentiment 
** Says near-term demand outlook from Indian IT cos for AI services modest, but long-term growth path noticeably firmer
** Says while the sector still lacks a hard near-term trigger, strategic positioning around AI has become more confident and central to the narrative
** YTD, index down 26.8%
     
     

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))