Bull vs bear: Robust tech upcycle in starting phase, says Edelweiss; ICICI stays cautious

"IT businesses will compound at a phenomenal, never-seen-before kind of pace. In my view, the earnings will grow at a much better pace in the future. I may go wrong for one quarter, but I think it is 3-5 years upcycle," Agarwal said.

Though Accenture is an Irish company that trades of NYSE, its quarterly numbers can have a strong rub-off effect on Indian IT stocks, Agarwal said. He added that it has moved up sharply since the last time it posted lower-than-expected results. Infosys has shown a similar trend.

"Everyone said Infosys' story is over at Rs 1,320. Today this stock is somewhere else (Rs 1,572), and again when we'll meet next quarter this time, I think people will take cognisance of the fact that we are in the long-term story," Agarwal added.

Guntupalli, on the contrary, took a deeper look at Accenture's sequential numbers. He said a significant part of Accenture's growth is coming from its consulting segment. "There is a bit of recovery in the consulting segment and there is a bit of normalisation of travel reimbursement. These two factors have led to a very strong beat on the overall expectations."

But, this consulting segment, Guntupalli said, "is not very relevant for the Indian IT companies."

"While the narratives and rhetoric have been spicing up expectations, we don't see any hard data to suggest such an upcycle. Or we don't see such hard data to believe that industry's growth rates or profitability would be significantly higher after COVID-19," Guntupalli said.