IT Stocks Likely to Remain under Pressure Due to Poor Guidance from Accenture

IT stocks are likely to remain under pressure in view of the poor guidance from Accenture, says V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

In the near-term, the market is likely to consolidate around the present levels without sharp up moves or down moves. In view of the truncated next week with only three trading days, volumes have dipped significantly in recent days, he said.

This is likely to continue. However, big intraday dips are likely to be bought since Domestic Institutional Investors (DIIs) are sitting on big cash and there is value in pockets of largecaps like banking. Any sharp intraday up moves may face selling from Foreign Institutional Investors (FIIs) since the US bond yields continue to remain high, he added.

Global market construct continues to be supportive with the US and Japanese markets posting new record highs. A significant takeaway from the Fed chief's message is the upward revision in the expected US GDP growth in 2024 to 2.1 per cent from 1.4 per cent. This augurs well for the global economy, he said.

BSE Sensex is trading at 72,761.72 points up 120.53 points. Heavyweight IT stocks like Wipro, HCL Tech, Infosys are down more than 2 per cent.