TCS, Infosys: Positive Q3 results may trigger next leg of rally in IT stks

In a departure from past trend, analysts believe that Indian IT companies may post a strong performance for the third quarter of FY21 (Q3FY21)

Information technology (IT) major Tata Consultancy Services (TCS) will kick off the December quarter earnings season for the sector, on Friday. In a departure from past trend, analysts believe that Indian IT companies may post a strong performance for the third quarter of the financial year 2021 (Q3FY21) on account of healthy order pipeline, large deal signings and going by strong earnings from Accenture. 

Further, improvement in demand post Covid-19, acceleration in adoption of public cloud model, lower furloughs and decent growth in sectors such as consumer, technology and healthcare are likely to add to the revenues of the IT