Will downgrade-hit IT stocks weather the Q4 earnings storm? The test begins today
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India’s tech titans, once the darlings of Dalal Street, are now limping into the Q4 results season bruised, battered, and bracing for more pain. With the Nifty IT index already down almost 30% from its peak, the sector is knee-deep in a bear market. And the bears are only getting hungrier. The March quarter results season begins today with Tata Consultancy Services (TCS) kicking things off, but the prelude to the earnings symphony has been anything but melodious, thanks to Trump’s tariff tantrums. Brokerages have gone on a downgrade spree, slashing target prices, cutting revenue estimates, and issuing cautious guidance—a loud signal that Q4 will likely be marred by seasonal weakness, a gloomy Europe, and growing clouds over US demand. “We expect largecaps to have a subdued quarter with all companies likely posting a sequential drop in revenues,” Nomura said, adding that it expects QoQ (quarter-on-quarter) constant currency revenue decline...