After Tata Consultancy Services’ results, HCL Technologies and Tech Mahindra are due to report. Analysts say clients remain cautious on non-essential IT projects, keeping sector growth subdued. Accenture’s recent results suggest spending is not decreasing but reallocating to large, AI-led transformational projects. On Thursday TCS beat profit expectations, but constant-currency revenue rose only 0.5% QoQ. Brokerage Nuvama says the IT sector has materially underperformed the broader market over t

After Tata Consultancy Services’ results, HCL Technologies and Tech Mahindra are due to report. Analysts say clients remain cautious on non-essential IT projects, keeping sector growth subdued. Accenture’s recent results suggest spending is not decreasing but reallocating to large, AI-led transformational projects. On Thursday TCS beat profit expectations, but constant-currency revenue rose only 0.5% QoQ. Brokerage Nuvama says the IT sector has materially underperformed the broader market over the past nine months, driven by negative sentiment around generative AI platform companies and uncertainty tied to the Gulf conflict, but still views the IT services model as durable and generative AI as a longer-term opportunity.