Information technology (IT) companies' stock rallied in trade on June 26, 2020 after global professional IT firm Accenture posted better than expected quarterly numbers for the quarter ended May 31, 2020. For the quarter the company posted an adjusted profit of $1.9 per share, which is higher than the average estimate of 22 analysts of $1.85.
Also, the revenues at the firm came in at $11 billion.
In the management commentary, the company warned of a slump in IT spending given the grim economic outlook. Also, other global IT players including the likes of TCS, Wipro, Infosys, Cognizant see a decline in demand from their clients across markets as discretionary spending is being lowered on account of the pandemic.
But on the positive said, the company iterated that spends of digital transformation will go up by taking a cut on operational cost.
On the development stocks from the IT pack surged with Nifty IT jumping up to 4.7% intra-day to a high of 15086. And the top stocks, contributing the maximum to the
Nifty IT gains are Infosys, TCS, HCL, Wipro, Mindtree among others.
Infosys (up 6.3%), Mastek (up 8.3%), Mindtree (up 5.86%), Niit Tech (up 8%) werethe top gainers.