Weak guidance, muted sentiment to weigh on near term IT outlook

There could be more downsides if the rest of IT pack disappoints

The two IT majors -- Infosys and TCS -- delivered disappointing results for the fourth quarter of the 2022-23 financial year (Q4FY23). Poor macro conditions and weak sentiment in the banking, financial services and insurance (BFSI) space accounted for the miss.

For TCS, revenue in constant currency (CC) terms grew at 0.6 per cent on a quarter-on-quarter (QoQ) basis. Weakness was visible in North America, primarily due to deferred discretionary spending. On the year-on-year YoY basis, revenue grew by 10.7 per cent.

Customer sentiment across BFSI, retail and technology (particularly in US) was poor. The banking sector crisis in March