Infosys, Wipro, and HCL Technologies Prepare for Tough Q2 Earnings Amid High Investor Expectations

Top Indian tech companies like Infosys, Wipro, and HCL Technologies are getting ready to report their Q2 earnings, but they face high expectations from investors concerned about a possible market correction, according to a Bloomberg report.

The Indian IT sector has started to recover in FY25 after a slowdown caused by reduced spending from US clients last year. Q1FY25 earnings were better than those in Q4FY24, but analysts warn that “high expectations for the full year may be difficult to meet.”

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HSBC Global Research analysts noted that while demand is improving, it isn’t exceeding current estimates. They pointed out that gains in the banking, media, and telecom sectors won’t be enough to surpass consensus expectations. Investors will be watching closely for insights into budgets from US companies and the effects of interest rate cuts.

Concerns About Market Correction

There are worries about a market correction in Indian stocks, raising questions about whether earnings across various sectors can support the high valuations after the Nifty 50’s strong performance over the past year. Notably, Tata Consultancy Services (TCS) reported its Q2FY25 results on October 10, but it fell short of profit expectations.

In Asia, other companies like Taiwan Semiconductor Manufacturing Co. (TSMC) and Contemporary Amperex Technology Co. (CAT) have shown better-than-expected results, but they also face their own challenges.