Revival in IT stocks likely to continue in new year

Mumbai: The recent optimism in shares of information technology companies could spill over into the New Year as the US Federal Reserve’s signal to cut interest rates in 2024 has partly eased concerns over higher-than-average stock valuations.

While Accenture’s latest growth guidance is indicating a subdued near-term outlook for the sector, fund managers and analysts said the US central bank’s dovish tilt has reduced the risk of earnings downgrades. The next big trigger for the sector would be signs of deal wins by IT firms, they said.