Accenture's second quarter numbers clearly indicate that their is a strong demand for the sector, said Abhishek Bhandari of Macquarie Capital Securities.

“The key message from Accenture result is that the demand tailwinds are very strong for the sector mainly in cloud transformation,” he said in an interview with CNBC-TV18.

"The sector is still undergoing EPS upgrades both led by revenue as well as margin. A company like Infosys has been constantly upping the revenue guidance mainly aided by robust deal inflows that they have witnessed," said Bhandari while talking about the Indian IT sector.

Bhandari is positive on HCL Technologies and Infosys in the largecap space and likes Larsen & Toubro Infotech and Mphasis in the midcap IT space.

“Our top picks are Infosys and HCL Technologies in the largecap space. In Infosys, our target price is Rs 1,680. We are positive on HCL Tech because we see the software business for them turning around. In the midcaps we like Mphasis and Larsen & Toubro Infotech,” he said.

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(Edited by : Niral Sharma)