The global research firm also sees organic growth to be led by Infosys and dragged by Tech Mahindra.
With the onset of earnings season this week, several market voices believe this will be crucial as valuations have run up on better growth hopes. The effect of GST and demonetisation will start to settle now and trends from the September earnings season could help ascertain the fundamentals behind the run.
Having said that, CLSA expects continued softness in demand for the September quarter earnings.
It expects cross-currencies and M&As to make headline numbers better at 2.5-3.6%.
The global research firm also sees organic growth to be led by Infosys and dragged by Tech Mahindra. Further, it sees Infosys maintaining dollar revenue guidance, while HCL Tech could increase the guidance.
For Wipro, the company expects 2-3 percent dollar revenue growth in Q3.CLSA has retained buy on HCL/Infosys/TCS, while it expects Wipro to outperform. It has a sell call on Tech Mahindra.