IT stocks on track for their worst year since 2008

Despite the greatest drop in 12 years, Indian IT companies are trading at a 34% premium to their pre-COVID-19 average valuations.

In three of the previous five years, IT services exports fell short of the guideline provided by the National Association of Software and Services Companies at the start of the year.

Credit Suisse Securities India warned last week that the correction in Indian IT stocks had been insufficient. The risks of large reductions in Street revenue projections for key Indian IT companies were high.

Clients of Amazon Web Services have begun to explore for ways to reduce their expenditure on cloud-related services, contradicting comments made earlier this year by various IT organisations.