As retail industry nosedives, Indian IT majors’ fortunes too may falter

Analysts and broking houses now say their forecast about the travel vertical impacting the Indian IT services companies most was misplaced. They now believe that the retail sector will be the worst hit for Infosys, Wipro and Mindtree and a few others, as their exposure to retail clients is among the highest.

According to several reports, as many as 13 retailers in the US with 3,800-plus stores have already filed for bankruptcy in 2020 ytd (year-to-date). These include J Crew, True Religion, J C Penny and Stage Stores. Certain others such as Victoria’s Secret and Bath & Body Works are also potential candidates.

“Recovery for surviving retailers will be painful and challenging, hinging on an effective end to the pandemic and a rebound in consumer confidence,” BobCapital’s analysts said.