IT majors might disappoint in Sept quarter

Despite it being a seasonally strong one, due to lack of client spending revival in key areas; recovery could be pushed to March quarter

The July-September quarter is usually a strong period for India's top information technology (IT) service companies but this one is likely to be different. Analysts estimate the sequential revenue growth on a constant currency basis in that quarter for the top five IT companies at no more than two to three per cent.

Further, the expected revival in spending in the key segment of banking, financial services and insurance (BFSI) is also unlikely e soon, affecting revenue growth of the sector in FY18. Analysts are also cautious on the other key segment of retail. Among the top ones, HCL Technologies and