Will IT stocks survive recession fears?

High inflation and a rising interest rate environment have seen global agencies such as the IMF and World Bank downgrade global growth estimates, raising recession fears.

However, India’s large-cap IT companies – TCS, HCL Tech and Infosys – broadly withstood these concerns in the July-September quarter.

Among frontline companies, TCS and HCL Tech beat expectations supported by sustained demand for digital initiatives. The companies posted quarterly revenue growth of 3.8-4% in constant currency terms.

Wipro, on the other hand, disappointed the Street with a 9% year-on-year drop in profit and a less-than-expected revenue growth of 14.6%.