Discretionary spends, market share gains in digital to lift IT growth

Expectations for Dec quarter remain muted but March onwards looks better

Improving economic outlook in the US and other key countries, uptick in discretionary spends and market share gains in the digital segment are expected to improve the growth momentum for Indian information technology (IT) majors. 

While the Indian IT firms saw their earnings revised downwards last year by as much as 15 per cent, as the improvement in key sectors such as banking, financial services and insurance (BFSI) did not come through, better growth prospects could help them reverse this trend in earnings. 

Analysts at Edelweiss expect the outlook for IT companies to improve on the back of better growth in the