Positive signals

IT companies have done better than expected

The third quarter (October-December 2022) was expected to be grim for the IT sector. Guidance had been cautious, citing margin pressure, seasonal weaknesses, order delays in the recession-hit European Union, and increasing caution among US-based clients. The initial results from some of the bigger IT services firms suggest that demand was somewhat better than hoped, and some supply-side issues seem to be easing for the industry. Revenues growth beat consensus stock market expectations for TCS, Infosys, and HCLTech. This is a positive signal, given that these companies have an aggregate exposure to all regions, and to a broad spectrum of