Infosys & Wipro ADRs Slip Despite Accenture’s Strong Show

Infosys ADRs fell over 2% to ~$16.6, while Wipro ADRs dropped ~1.3% in U.S. trading. This decline came even as Accenture reported strong FY25 guidance and Q4 performance, with revenue and EPS beating expectations. Why Did They Fall? Valuation pressure: Indian IT ADRs have run up recently, leaving little room for upside even with global IT optimism. Sector divergence: Accenture’s client base and service mix are different, making its growth less comparable to Indian IT companies. Macro concerns: Investors remain cautious on U.S. demand recovery, H-1B visa issues, and margin pressures for Indian IT firms. Profit booking: After the recent IT rally, traders may be locking in gains. Key Takeaways Accenture’s results highlight that global IT demand is stable. But markets want proof that Indian IT companies can translate that into consistent revenue and margin growth. Infosys and Wipro ADR declines suggest sentiment remains fragile, even with supportive global cues. What to Watch Q2 FY25 results from Infosys, Wipro, and peers — guidance will be critical. U.S. tech spending trends, especially from BFSI and retail clients. Currency movements and cost management, which directly affect margins. Whether ADR weakness spills over to domestic IT stocks in the coming sessions. Verdict: Accenture’s upbeat numbers are a positive backdrop, but Indian IT ADRs sliding shows that investors remain unconvinced. For the rally to sustain, Infosys, Wipro, and peers must deliver strong guidance and margin stability in upcoming results.