Indian It Sector

Restricting imports while also incentivising domestic production under the PLI scheme for IT hardware will achieve the dual purposes of reducing our import dependence significantly, while also boosting domestic manufacturing and employment.

What US banks’ Q2 results tell us about Indian IT sector’s outlook

American banks are increasingly shifting from third-party consulting to investments in own technology employees in global capability centres (GCCs)

Equity market reasonably valued; sentiment upbeat, not euphoric: Gautam Duggad, Head of Research, Motilal Oswal Financial Services

Despite the rally, Indian equity market has underperformed other global markets, such as the United States, Japan, and some markets in Europe.

Worsening client profitability to hit IT demand, says Jefferies

While revenue estimates for CY23/24 for top clients of IT firms have remained broadly unchanged, estimates for clients of TechM & Wipro have seen a downward revision by 1-5 percent.

Earnings momentum unlikely to resume soon, says Harsha Upadhyaya of Kotak MF

Harsha Upadhyaya, CIO Equity at Kotak Mutual Fund, expects a range-bound market in the near term, citing the unlikely resumption of earnings momentum. He remains cautious on the IT and new-age space and is bullish on sectors with steady earnings growth, such as banking, auto, cement, and industrials.

Street isn’t anticipating pricing compression for IT companies: Girish Pai

The Head of Research at Nirmal Bang Securities feels midcap IT companies will face more pain in the upcoming quarter due to higher valuations, client concentration and vertical concentration, among others.

Mid-cap IT stocks likely to emerge as strong performers in next 2-3 years: Envision Capital's Nilesh Shah

"If there's a rally, you should probably switch out from large-cap names and get into tier-2 names. It's quite possible that in next 2-3 years some of the names from midcap space will emerge to be strong performers," said Nilesh Shah

Attrition costs hit IT companies, but the worst may be over

One reason why the worst appears to over in staff attrition is that tech startups have not only slowed down their recruitment in the face of dwindling funding but also started to lay off staff

IT will continue to receive tailwinds from strong deal activity and digital transformation

A potential economic slowdown in end markets should only have a modest impact on revenue growth for Indian IT companies, says CLSA

Correction stabilises valuation of IT stocks before a rate hike injects more volatility in markets

Strong demand and other long-term growth drivers are intact for the IT sector. With favourable exchange rate and easing of supply-side challenges, the sector is likely to deliver good growth again in the medium to long term

IT fails to beat estimates on supply-side challenges but strong demand may help rebound

Experts are of the opinion that the erosion in margins and valuation derating process could slow from here for the IT companies as the long term growth drivers remain intact

Hiring in non-IT sector shows rebound, Hitesh Oberoi sees no impact of slowdown in US

Managing Director & CEO of Info Edge speaks on the company's outlook, the impact of slowing hiring momentum and growth in the non-IT sector.

IT Q4 preview: Companies ride demand momentum; market share gains expected but supply-side headwinds to remain

Supply-side challenges around high attrition, higher-than-usual pay increases for offshore employees and resumption of some discretionary spending like that on business travel will weigh on margins in the fourth quarter

Indian IT should amp up its ambitions

Recent events present the perfect opportunity for India’s most globally competitive sector to leverage its dominant status for exponential growth

Pandemic impact | Indian software sector employs more people than textiles, education in formal economy: Report

The last two years also saw textile companies shutting down operations and downsizing their team, whereas the tech sector thrived. According to the report by How India Lives, in January 2019, there were close to 2,24,000 firms in the formal textile industry. Now close to 4 percent have left the formal economy fold.

As tech firms gear up to build on COVID-19 gains, talent-building a tough challenge

Digital, cloud segments will hold the key, Indian IT sector biggest gainer from pandemic, McKinsey report says. If you look at all the projections, you are looking at an incremental spend of $1 trillion in the next 4-5 years, and we should get a 20% share, says an IT executive.

Will ensure H-1B reforms don't hinder India's IT sector: NASSCOM

NASSCOM President R Chandrashekhar said he will consult the US government and its embassy in India to ensure that the industry does not face any difficulty or hindrance in its work.

Cognizant's 8-10% rev guidance to lift Indian IT spirit: IIFL

Cognizant's guidance of 8-10 percent revenue growth for 2017 is a silver lining for the Indian IT sector which has been reeling under a lot of pressure, said Sanjiv Bhasin, Executive VP - Markets and Corporate Affairs, IIFL.

Infosys may consider Rs 12,000 crore share buyback: Sources

In a sign of the troubled times that the Indian IT sector has been going through, the management of Infosys may consider the option of a share buyback, according to people close to the IT major. The size of the share buyback could be a mammoth Rs 12,000 crore.

Indian IT firms to meet Trump officials on visa reform concerns

R. Chandrashekhar, head of Indian IT industry body Nasscom, said details of the visit were still being finalised, but chief executives from some of India's big IT companies would be part of a delegation visiting Washington in the week of February 20.

Brexit to impact Indian IT sector in short-term: Nasscom

Britain's exit from the European Union will have a negative impact on the USD 108-billion Indian IT sector in the short term, industry body Nasscom predicted on June 20

Bullish on Indian IT sector; TCS best executer: Pictet

Prashant Kothari, Senior Investment Manager of Pictet Asset Management has a buy on Motherson Sumi and believes the company will not lose market share due to Volkswagen emission scandal.

Infosys remains top pick in Indian IT space: Religare

According to Religare, Infosys has remained top pick in Indian IT space. IT stocks have outperformed the broader index by 15% in Q2 led by INR depreciation, and we think revenue-led earnings beat is essential for continued outperformance. However, a profit warning from HCLT is a negative surprise and should cap near-term upside, says the report.

IT - Positive macro but growth challenges for sector: Emkay

Emkay has come out with its report on IT sector. "Positive macro but growth challenges for sector", says the report.

Buy Infosys, TCS, Tech Mahindra, HCL: BP Equities

BP Equities has come out with its report on IT sector. The research firm has remained overweight on the sector and has recommended buy rating for Infosys, TCS, Tech Mahindra, HCL Tech and hold rating on Wipro & Persistent Systems.