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Nifty IT heatmap points to possible rally after Accenture results

Infosys and Wipro each jumped more than 6% at the NYSE following Accenture's Wednesday results, a move market watchers tied to US-linked demand.

Reported · Written up by our desk · Emerging Markets

LiveMint Markets said a Nifty FPI 150 heatmap suggests foreign investors have started buying Indian IT shares ahead of Monday trading, with expectations of a broader rally after Accenture reported better-than-expected results.

The outlet pointed to strong post-results buying for Indian IT companies listed on the NYSE, noting that Infosys ended near 6% higher and Wipro finished up more than 6% on Wednesday.

LiveMint Markets added that Accenture is a major customer for Indian IT firms and that these companies derive more than 50% of their average business from the United States, which it said is why investors are looking for similar Q2 outcomes.

It also argued that the market has a history of discounting events in advance, implying stronger buying in Indian IT stocks when they reopen on Monday.

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