New Delhi, 3 October (IANS). Sustainable growth of India’s IT service sector is expected to be between 4 to 5 percent above the trendline of the last three years. This information was given in a report on Friday.
According to the report of HSBC Global Investment Research, analysts have estimated low macro instability in the coming months and are expected to improve an increase in FY 27.
The report said that due to the demand due to macroeconmic uncertainty and the defense effect of artificial intelligence, there will be no improvement in the IT service sector in the second quarter of the current financial year.
The report said, “In our view, these factors will not show improvement by FY 2027, as global pressure will reduce price pressure. Also many IT shares have been given ‘by’ ratings.”
The growth in the second quarter is expected to remain the same as the first quarter, which will be mainly due to the deals of vendor consolidation and cost cuts, which HSBC has named Zero-Sports.
The research firm said, “The sustainable growth rate of the sector will not exceed 4-5 percent, although the increase in the last three years has been less than this trend rate. While FY 24 and FY25 GCC was affected by the loss in stock, while FY 26 has been affected by the deflection and uncertain macro environment.”
The report said that recent American corporate results may be good, but companies are still stopping new expenses.
According to the firm’s estimate, quarterly estimates suggest that the dollar is expected to increase a systematic increase in dollars by large IT firms. Mid-tier companies may fall by 1 percent or an increase of 5.5 percent.
However, the firm said that large cap IT stocks are no longer a five-year-end-and-hold compounding stocks. Rather, active management will be needed regarding their cycle and volatility.
-IANS
SKT/
