Indian IT Firms Face Another Muted Quarter Amid Uncertainty

Indian technology companies may have a slow three months from July to September.

This period is usually stronger, but clients are being careful and spending less on optional projects.

Analysts also say new contracts are not growing quickly.

Some companies may get a boost from acquisitions.

A weaker rupee and operating efficiencies could help make up for higher wages.

But customers are negotiating lower prices, partly because artificial intelligence can help complete work more efficiently.

Companies say using generative AI directly in complex, highly regulated businesses is still difficult, so technology service providers remain important.

Analysts expect earnings to be softer than in the previous quarter, which may keep investors cautious.

Global market pressures are also weighing on Indian stocks.