IT services firms likely to show strong Q3 growth on deal momentum

Seasonal furloughs to have minimal impact, guidance for full year to be keenly watched

Investors would be looking forward to the final guidance for FY19, as IT major Tata Consultancy Services (TCS) kick-starts the December quarter earnings season for the IT industry this Thursday, and Infosys follows suit on Friday. They would also be keenly watching the macroeconomic outlook, especially on the US economy, Brexit, and the deteriorating US-China relationship and its impact.

Given the large contracts won over the past two quarters, the commentary will be expected on the deals momentum. Analysts are keen to note how fast Infosys is catching up with TCS, even as the Mumbai-based company is expected to give