Accenture Results Lift IT Sentiment, But Indian IT Earnings May Disappoint From October 8

Indian markets are heading into the Q2 earnings season with several factors in focus, from rising global bond yields and a strong dollar to elevated crude oil costs and foreign fund flows. Ajay Bagga, Sr. Market Veteran explains why these global pressures continue to weigh on emerging markets, even as India’s domestic macro fundamentals remain strong. Banking stocks will be closely watched for the impact of higher yields and potential treasury losses. Meanwhile, Accenture’s results have offered some relief to IT stocks, but nearly 50% of its growth came from acquisitions. With Indian IT companies lacking a similar acquisition boost, earnings could remain mild. As the Q2 results season gathers pace from October 8, investors may need to brace for potential disappointment across the IT sector.