Daijiworld Media Network – Mumbai

Mumbai, Jul 13: HCL Technologies Ltd., Wipro Ltd. and Tech Mahindra Ltd. are set to announce their quarterly earnings this week amid growing investor concerns over the future of traditional information technology services in the era of artificial intelligence (AI).

The Indian IT sector continues to face pressure from global macroeconomic uncertainty, heightened by the conflict in West Asia and the rapid adoption of AI, both of which have weakened demand and weighed on investor sentiment. Shares of several leading IT companies have declined this year as concerns over discretionary technology spending persist.

Market sentiment deteriorated further after US-based IT services major Accenture Plc projected weaker-than-expected quarterly revenue, reinforcing fears of slowing demand and pushing the NSE IT Index lower.

Tata Consultancy Services Ltd. (TCS), which reported its quarterly earnings on Thursday, met analysts' expectations for net profit, supported by cost-cutting measures that helped offset weakness in its core IT services business.

Brokerage Jefferies said recent interactions with industry participants indicated that pressure on IT services budgets continues, resulting in reduced discretionary technology spending by clients.

Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to provide a key indicator of global AI-driven demand when it releases its June sales figures. The announcement, delayed due to Typhoon Bavi, is expected to offer investors a clearer picture of the company's second-quarter performance and broader trends in the semiconductor industry.

Separately, India's Avenue Supermarts Ltd., the operator of the DMart retail chain, reported quarterly results on Saturday that fell short of analysts' net profit estimates.

The company also announced a strategic shift in its e-commerce business by discontinuing operations in several cities that made only a limited contribution to overall earnings, as part of efforts to improve profitability.