IT Services Q1 Results Preview - Will ‘Slower For Longer’ Fears Be Validated? Nirmal Bang

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Key Points We expect most companies under our coverage to deliver a weak Q1 FY24 QoQ in what should have been a seasonally strong quarter. There is a fair probability that the upper end of revenue guidance provided by Infosys Ltd. and HCL Technologies Ltd. may be scaled back. Q2/H2 FY24 growth pick up indicated by many companies may need to be tempered. That has likely led to Nifty IT underperforming Nifty by 750 basis points in Q1 FY24. Consensus expectation of revenue uptick in FY25 may be at risk if U.S. recession gets pushed back to 2024. That could be a dampener on sector performance due to a ‘slower for longer’ fundamental performance. S&P 500 earnings has been better than expected in March 2023 quarter, but customer caution over the last three months has led to technology and IT services companies downgrading their outlooks. Large banking, financial services clients in the U..S have become cautious spenders despite record profits. Need to see if the recent stress tests by the U.S. Fed, which the banks cleared will lead to easing up on the caution. Market will try to determine if customers have frozen spending plans for 2023 at weak levels and will revisit them only in early 2024. We believe Nifty IT will continue to underperform Nifty over the next six months..Click on the attachment to read the full report:.IT Services Q1 Results Preview - Seasonally Strong Quarter To Be Weak Due To Macro: IDBI Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

IT Services Q1 Results Preview - Will ‘Slower For Longer’ Fears Be Validated? Nirmal Bang

We believe Nifty IT will continue to underperform Nifty over the next six months.

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IT Services Q1 Results Preview - Will ‘Slower For Longer’ Fears Be Validated? Nirmal Bang

We believe Nifty IT will continue to underperform Nifty over the next six months.

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