Infosys, Wipro ADRs drop over 3% on NYSE after Accenture hikes full-year revenue guidance to 5-7% on AI boom

Infosys, Wipro ADRs: American Depository Receipt (ADR) shares of India's leading information technology (IT) giants Infosys and Wipro witnessed a sharp decline on the New York Stock Exchange (NYSE) after Accenture announced its second-quarter earnings results and hiked its full-year revenue guidance to a range of 5-7 per cent, higher than market estimates.

American Depositary Receipt or ADR is a tool for foreign companies or organisations to trade on US stock markets, just like regular shares of US companies. In theory, an ADR is similar to a special certificate issued by a US bank.

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Infosys, Wipro ADRs today

Infosys ADR dropped 3.5 per cent to $17.9 on the American stock exchange, while Wipro ADR fell 3.2 per cent to $2.79 on the NYSE. The tech-heavy Nasdaq Composite was trading at 17,830, higher by 103.88 points. Nifty IT index ended at 36,676.65, up 1.25 per cent and was among the top-performing indices amid a positive sentiment in the Indian stock market.

On Thursday, shares of India's second-largest IT major, Infosys, settled 1.74 per cent higher at ₹1,614.15 apiece after an intraday high of ₹1,631 on the BSE. Shares of Wipro settled 0.83 per cent higher at ₹267.95 on the BSE.

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Accenture Q2 Results

Accenture raised the lower end of its annual revenue forecast, betting on growing demand for its services to help clients integrate artificial intelligence (AI) powered tools into their operations. The world's largest IT services company has secured several projects and partnered with major banks, telecommunication firms and sports firms, among others.

New bookings for Accenture, a key indicator of future revenue, fell three per cent to $20.9 billion in the second quarter. According to news agency Reuters, Accenture expects annual revenue to grow between five per cent and seven per cent, compared with its prior forecast of four per cent to seven per cent.

Accenture's consulting service segment, which accounts for 59 per cent of its revenue, reported second-quarter revenue of $8.3 billion, which fell short of the average analyst estimate of $8.54 billion. Accenture reported second-quarter revenue of $16.66 billion, compared with estimates of $16.62 billion.

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