Nomura expects subdued near-term growth for Indian IT companies as macro uncertainty and weak tech spending weigh on demand ahead of Q1 earnings. However, it sees long-term opportunities emerging from AI-driven changes, with IT firms potentially expanding their addressable market as enterprises increasingly rely on system integrators in hybrid human–digital workflows.

Indian IT faces potential FY27 revenue cuts due to AI spending shifts, geopolitical risks, and uncertain demand conditions.

The Nifty IT index fell more than 2% to a fresh 52-week low on Tuesday as persistent inflation concerns and uncertainty over the US Federal Reserve's interest rate trajectory…