Worse than expected! JP Morgan paints a grim outlook for Indian IT companies

JP Morgan predicts a bleak outlook for India’s IT sector due to weaker demand for IT services in June. Indian IT firms reported numbers lower than expected in Q4 2021 due to deferred project starts and cancellations. Income growth projections for FY24 are also weak across the industry, prompting JP Morgan to anticipate sub-5% year-on-year industry growth in FY24 and downgrade Persistent Systems to “underweight.” It expects most IT services firms to miss their expectations and has placed Infosys, TCS and Mphasis on negative catalyst watch.