IT firms

Analysts see growth remaining muted for the next two years, advise stock-specific approach

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The BSE IT index has shed over 3% year-to-date, compared with a sharp 12% gain seen on Sensex

US President, Donald Trump, trump

Valuation gap between top IT stocks and Sensex widest since 2009 on low export growth fears

stocks, markets, visa, US

According to experts, Trump plans to overhaul work-visa programmes that dampened investor mood

IT stocks slumps as Trump leads presidential race to White House

Congruence on terrorism, current disquiet on immigration, short-term visa would top the wish list

IT highest paid sector in India, manufacturing far behind

According to them, current valuations don't capture structural demand issues and potential impact of global events

BPO policy for small towns sparks huge interest

Companies pass on gains arising from currency depreciation amid subdued demand environment

Underweight on the sector since January amid concerns over growth prospects; no early reversal seen

IT's grim portents

Information technology (IT) bellwether Infosys Technologies&#39; January-March quarter earnings, announced on Thursday, missed Street estimates. While its net profit for the three-month period declined 11.7 per cent from a year ago to Rs 7,033 crore, the more concerning piece of news lay in its outlook for FY26: The company guided for weaker than expected revenue growth during the ongoing financial year. 
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Even as global economic uncertainty, tariff disruptions and cautious client spending cloud the sector&#39;s outlook, Infosys seems to share the pessimism aired earlier by Accenture, which fears loss of US federal contracts, and Tata Consultancy Services (TCS) and Wipro, which too flagged a challenging business scenario. 
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Both Infosys and TCS, though, have affirmed that they intend to continue hiring in thousands from engineering colleges this financial year. While Infosys said it would hire 20,000 fresh engineering graduates this year, TCS committed to sticking to its annual hiring numbers of 42,000. Only Wipro said it would recalibrate its campus hiring programme based on the demand environment. 
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The equity market also seems to echo the grim portents of the IT sector, with India&#39;s top IT services exporters continuing to lose ground on the bourses, despite bulls&#39; return to the Street. In April alone, the Nifty IT index has fallen as much as 9.5 per cent, even as the broader Nifty 50 has gained 1.4 per cent. The IT sector&#39;s weighting in the Nifty 50, at 10.2 per cent, stands at the lowest in 17 years and only a shade better than the all-time low of 9.7 per cent before the breakout of the 2008 global financial crisis. 
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Meanwhile, TCS appears to be facing more difficulty, with the US Equal Employment Opportunity Commission investigating allegations of discrimination levelled against it by dozens of American workers. 
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What might these developments mean for the stocks and books of India&#39;s IT giants? Read on to arm yourself with insights and inform your investment decisions.

What next for stocks of IT firms

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