A Double-Edged Sword for IT Companies

Highlights

• Top Indian IT companies report mediocre results
• Uncertainty pertaining to Generative AI affecting performance
• No signs of a pick-up in hiring
• Generative AI can be a short-term boost for the sector

Benchmark indices and many other sectoral indices are trading close to their record highs. However, the same cannot be said for the IT Sector, particularly in the initial three months of 2024.

(image)

Source: Tradingview.com

Besides the global headwinds that are affecting every sector, the IT sector was doubly affected by structural changes. Indian IT companies