IT stocks rise on positive read-through from Accenture results

Indian software companies gained on Friday as a better-than-expected rise in quarterly revenue by Accenture sparks hopes of a robust demand environment, dealers say.

Tata Consultancy Services was up 4 per cent, Infosys gained 1.3 per cent, Wipro up 1.9 per cent, HCL Technologies rose 3.5 per cent and Tech Mahindra surged 3.9 per cent.

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 per cent rise in quarterly net revenue, led by a rebound in demand for its consulting services, where it competes with Indian IT companies.

(Copyright Thomson Reuters)