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Below Quote on IT sector outlook By Vinod TP, Research analyst at Geojit Financial Services.

Due to macroeconomic challenges in the BFSI and Hi-tech sectors, delayed discretionary spending, it is likely that revenue growth will soften during this quarter. Still, cloud computing, digitalization, artificial intelligence, and cybersecurity are the key drivers for revenue in the current challenging circumstances. Recent data suggests that the U.S. technology sector foresees a slowdown in CY23-24 guidance due to drop in deal conversion rate. During this challenging period, Indian IT companies are focused on enhancing margins through cost optimization and resolving supply-side issues. Looking ahead, we expect higher deal conversion at the start of H2FY24, which will improve revenue visibility. On the valuation front, over the past 1.5 years, the industry valuations have been corrected by more than a third, limiting the downside risk. Going forward, it presents an opportunity for long-term investors to accumulate in the IT sector.