TCS to herald a dull start with its Q2FY17 numbers

The IT sector’s earning season may dampen the mood of Dalal Street in upcoming financial results season. India’s major IT firm, Tata Consultancy Services (TCS) will declare its results on October 13. There will be more action on IT index owing to major companies second quarter results. As per company’s management, slowdown in BFSI vertical in US has resulted in sequential loss of momentum. It has cautioned the investors on its business trends in Q2FY17.

The top five Indian IT firms are expected to cut full year forecast. Weaker discretionary spending and growing pricing pressure in the traditional business will also be factors due to which Indian IT firms had cut down expectations. Another major global event like BREXIT process to start from March 2018 would be a caution for FY18 also.

IT industry body NASSCOM had projected a 10 to 12 per cent growth for the Indian software services segment for FY17, lagging the 12 to 14 per cent growth forecast it had made for the current financial year. A volatile global economy and currency fluctuations, especially the weakening of the rupee against the US dollar, continued to impact IT industry.