With Q1 earnings season knocking on the door, Nomura believes that the long-term target market for Indian IT would expand, although the near-term growth is likely to remain anaemic.
In its latest note, the international brokerage said that Indian IT services companies, especially the large caps, are in the middle of a “perfect storm of two key headwinds”. Macro uncertainty arising from the seesaw political game in the Middle East and uncertainty around rates, particularly in the US, was named the first set of headwinds that is keeping client spending subdued at the margin level.
