IT Sector Recovery and Roadblocks
Ratin Biswass / 12 Dec 2024/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Letter to Editor, Letter to Editor
I am a regular reader of Dalal Street magazine and find your sector reports invaluable for understanding future prospects and making informed investments.
I’m a regular reader of Dalal Street magazine and find your sector reports invaluable for understanding future prospects and making informed investments. Could you share insights on the IT sector? - Prakash Kumar[EasyDNNnews:PaidContentStart]
Editor Responds: We appreciate your kind words of encouragement. Despite a significant selloff since late September 2024, which caused benchmarks to drop over 10 per cent from record highs, the IT sector remained resilient. Domestic IT stocks received an expected boost, mirroring the robust uptrend in global IT equities following Donald Trump’s victory in the U.S. elections. A strong dollar, stable policy framework, favourable corporate tax reforms, and Trump’s firm stance on China are key factors driving increased U.S. fund inflows into India.
Optimism also stemmed from the notable performance of Indian IT companies amid muted results in most sectors. After six quarters of hiring slowdowns, the industry is recovering, with major companies resuming campus hiring. However, significant growth may take several quarters, with experts projecting a rise in U.S. tech spending in H2CY25. Also, heightened regulatory scrutiny, an unfavourable immigration stance for the Indian workforce, and import tariffs are challenges that the domestic IT sector may encounter. Stay tuned for our special report on the IT sector in the upcoming edition for in-depth insights.
[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]
To read the entire article, you must be a DSIJ magazine subscriber.
Current print subscribers click here to login
Subscribe NOW to get DSIJ All Access!
[EasyDNNnews:UnPaidContentEnd]