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

The Indian IT sector experienced a muted quarter, hinting at a moderate growth outlook for FY24. The delayed spending in a few segments, concerns in BFSI, and fears over a global economic slowdown are impacting the overall performance of the sector. Nevertheless, Indian companies have managed to enhance their profit margins through effective cost optimisation strategies and the resolution of supply-side difficulties. Significant contract wins, particularly in the domains of cloud computing, digitalization, artificial intelligence, and cybersecurity, are anticipated to serve as key drivers for future revenue generation despite the current challenging circumstances. 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 use an accumulation approach in the IT sector.

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