Indian IT firms set for ‘washout’ year, focus now on 2025: JP Morgan

J.P.Morgan analysts expect investors to parse upcoming second-quarter results and commentary from Indian IT companies for signs of recovery in deal signings in fiscal 2025 following a “washout” year.

“We remain negative on the sector as we haven’t seen a meaningful uptick in demand in our recent checks. We think the overall setup is not as positive as last quarter,” analysts Ankur Rudra and Bhavik Mehta said in a note on Wednesday.

All major IT firms, including Infosys, TCS , Wipro and HCLTech, have previously warned that clients, the majority of which are U.S.-based, have been lowering their IT spending, delaying and even cancelling contracts, as economic growth slows and on fears of higher-for-longer interest rates.