India’s IT edge: Why Accenture’s concerns may not be all bad news for tech sector

The Indian tech stocks are in focus after Accenture reported the possibility of future order bookings narrowing after indications of spending cut by the US Govt. As the Q4 earnings season looms ahead, all eyes are on the discretionary spend outlook for Indian IT companies. However, most analysts highlight that unlike Accenture, Indian IT companies do not have any significant exposure to US Federal government contracts. Most believe that the situation is unlikely to worsen further unless the macro economic parameters deteriorate further.