Indian tech earnings may indicate worst is over for showpiece sector

After more than a year of slowing sales, India’s software services companies that power corporations ranging from global banks to retailers to planemakers may finally be seeing light at the end of the tunnel.

Banks spending more on technology to meet regulatory mandates, companies upgrading SAP systems and a broader increase in technology spending after US elections due in November are some of the factors that have raised demand recovery prospects for India’s $245 billion-plus IT services sector next year, according to BofA Securities, which raised its rating on Infosys Ltd. April 9.