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IT Giants TCS, Infosys Gear Up for Q3 Results Amid H-1B Visa Scrutiny

The focus of Indian stock markets shifts to the third-quarter earnings of heavyweight IT companies, which hold significant weight in the Nifty index. Investors will keenly watch management commentary for guidance on client budgets, discretionary spending recovery, and hiring plans amidst a tighter H-1B visa regime. Updates on the progress of AI-led technologies as a future growth engine will also be critical. Additionally, earnings from Reliance Industries across its energy, retail, and telecom verticals will be a major market trigger.

Key Points: Q3 Results: TCS, Infosys Earnings Amid H-1B Visa Changes

  • Focus on management guidance
  • Scrutiny of H-1B visa impact
  • AI infrastructure progress
  • Client IT budget trends
  • Reliance Industries earnings
2 min read

Top Indian IT firms gear up to declare Q3 results amid tighter H-1B visa regime

Key Indian IT firms like TCS, Infosys, HCL Tech to report Q3 earnings. Focus on AI growth, client budgets, and impact of tighter H-1B visa approvals.

"Investor focus will be firmly on post-results management commentary and forward guidance. - Ponmudi R"

New Delhi, Jan 10

The stock market focus in the coming week will shift firmly to third-quarter earnings from India Inc, with heavyweight IT companies set to take centre stage and drive index-level direction, analysts said on Saturday.

HCL Tech, TCS, Infosys, Tech Mahindra and Wipro- together accounting for nearly 13 per cent of the Nifty's weight - are scheduled to report, making their results and management commentary critical for broader market sentiment.

"Investor focus will be firmly on post-results management commentary and forward guidance. Key areas to watch will include trends in client IT budgets for the current year, signs of recovery in discretionary spending across industries, and hiring plans - especially in the context of tighter H-1B visa approvals," said Ponmudi R, CEO - Enrich Money, a SEBI-registered online trading and wealth tech firm.

Equally important will be updates on progress in AI-led technologies and infrastructure, which are increasingly being viewed as the next growth engine for the sector.

Earnings from Reliance Industries Ltd will be another major trigger next week, given its significant weight in the indices. Investors will watch trends across the energy, retail and telecom businesses, with guidance on demand, margins and capex likely to drive sentiment, said market watchers.

Large-cap IT companies are likely to report sequential USD revenue growth in the range of 0-2 per cent, impacted by furloughs (in line with historical trends) and fewer working days, according to a Systematix note.

"Demand conditions remain largely unchanged, with subdued discretionary spending, cautious client sentiment amid macro uncertainty, and ongoing AI-led technology transitions," it added.

Tier-1 IT players are expected to post 0.2 per cent-2.1 per cent (on-quarter) USD revenue growth.

While Tata Consultancy Services (TCS) will declare its Q3 results on Monday, Infosys, a global leader in next-generation digital services and consulting, will announce results for the third quarter on Wednesday.

- IANS

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Reader Comments

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Rohit P
As someone working in a mid-tier IT firm, the focus on AI is real but the on-ground hiring is frozen. Everyone is talking about "upskilling" but where are the new projects? Q3 results will show if this is just talk or if there's real revenue from these new technologies. Fingers crossed for positive guidance! 🤞
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Aman W
Reliance results are equally important for the market mood. Jio, retail, and O2C... their performance is a barometer for the Indian consumer economy. IT sector might drive Nifty, but RIL drives the sentiment across the board.
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Sarah B
Watching from a global investor perspective. The sequential growth projections of 0-2% seem very modest. The key will be the commentary on when the discretionary spending freeze will thaw. The AI transition phase is costly and might pressure margins in the short term. TCS and Infosys outlook will set the tone.
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Karthik V
Honestly, we hear about "tighter H-1B regime" every few years. Companies have adapted before with more offshoring. The real issue is the lack of high-value digital transformation deals. Clients are just optimizing costs, not investing in big new projects. That's what the results need to reflect.
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Nisha Z
Hope the companies also talk about their ESG goals and diversity initiatives. It's not just about profits. As a shareholder, I want to know they are building a sustainable and inclusive future, especially when hiring plans are under scrutiny. The market should reward responsible governance too.

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