Indian IT Sector Faces Subdued Growth and Market Pressure Amid Macroeconomic and AI Concerns
Indian IT companies, including Infosys, face a challenging outlook with shares falling amid fears of AI disruption, weak earnings, and rising interest rates. Analysts from Nomura and Motilal Oswal anticipate subdued growth and soft demand in Q1 FY27 due to macroeconomic uncertainties, geopolitical tensions, and cautious client spending. Some firms, like KPIT Technologies, have already signaled lower-than-expected revenues, while the sector braces for potential downward revisions in annual guidance amid ongoing market volatility.