The American Depositary Receipts (ADRs) of Indian tech giants Infosys (NS:INFY) and Wipro (NYSE:WIT), listed on the New York Stock Exchange (NYSE), have been experiencing a downward trend. This downtrend is largely attributed to the unimpressive growth guidance released by Accenture (NYSE:ACN) Plc, which has cast a shadow over the entire IT services industry.
In addition to the overall industry forecast, Infosys and HCL Technologies have made downward adjustments in their respective growth predictions for the fiscal year 2024 (FY24). Tata Consultancy Services (NS:TCS) has also reported discouraging business momentum, adding to the industry's concerns.
Investors are now keenly awaiting the September quarter results of these Indian tech companies. The outcomes could potentially provide further insights into the future trajectory of the sector.
Despite the current market scenario, Morgan Stanley maintains an optimistic outlook on the IT sector. The investment bank has raised its price target for the entire group, citing prospects for margin growth and an expected recovery in earnings in FY25. This positive stance might offer some solace to investors amidst the prevailing uncertainty in the IT services industry.
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