How coronavirus may hurt Indian IT companies

BENGALURU: The IT services sector’s growth has been revised downward to 3-8% for the next financial year following the Covid-19 virus outbreak, according to Kotak Institutional Equities.
The brokerage firm has cut revenue growth estimates of some large and mid-cap tech services companies by 2-4% as the spread of the virus intensifies in developed markets, pushing clients to issue travel restrictions and work-fromhome measures.
In its forecast, Kotak said the outbreak in the Western economies has “eliminated” the possibility of growth revival in the US banking sector. The banking sector was showing signs of an uptick on the back of an improved macroeconomic environment and a limited trade deal between the United States and China.