At 11:28 am; the S&P BSE IT index, the largest gainer among sectoral indices, was up 2.7% as compared to 0.24% rise in the S&P BSE Sensex. The IT index is 3.6% away from its all-time high recorded on January 24, 2018 during intra-day trade.
Infosys is scheduled to announce its earnings for the period of January-March 2018 and the financial year 2017-2018 on Friday, April 13, 2018, while TCS is set to declare Q4 and FY18 results on April 19, 2018.
With improving economic outlook in US, higher adoption of outsourcing in Europe and digital services gaining scale, revenue acceleration looks certain for Indian IT companies, according to analysts at Edelweiss Securities.
Also Retail and Energy & Utility verticals have turned around and growth revival in BFSI fuels strong prospects for IT industry. While mid caps are expected to outpace large peers during current quarter, we perceive positive bias to large caps in the medium-to-long run as digital gains scale on account of execution capabilities, the brokerage firm said in a results preview.
Analysts at IIFL Institutional Equities expects the 4QFY18 results season to deliver a strong USD revenue growth (QoQ) of 2.8% with up to 180bps tailwinds from cross-currency movements, led by USD weakening against all the major currencies. Large-caps would grow 2.7% QoQ whereas mid-caps would outperform with average revenue growth of 3.5% QoQ on deal ramp-ups.