What lies ahead for Nifty IT in a shifting landscape?

India’s dominant position in the global technology landscape has traditionally been fueled by its robust IT services sector. Despite its historical strength, the sector has encountered significant challenges in the past year, primarily due to macroeconomic factors. But, are the signs of worrying over for the Indian IT sector? Let’s have a look.

In a seasonally weak quarter, major Indian IT firms reported robust Q3 numbers. While the US macroeconomic conditions are not yet out of the woods, as reflected in management actions like either tightening or lowering the revenue guidance growth. However, there are green shoots visible with a notable uptick in deal momentum across various markets, and then there is considerable enthusiasm surrounding Generative AI, suggesting potential for future advancements in the sector.