Bullish signal on daily chart
Revival in IT spends
FY20 began with the digital transformation trend gaining further momentum, leading to substantial growth in our portfolio. Across the dynamic global business landscape, disruptive emerging technologies continued to drive IT spends. The year saw the revival of IT-modernisation spends in the market, subdued in the past few years. We saw resurgence of multi-year large outsourcing contracts as clients crystalized their transformation roadmaps.
Some sector may witness slow down
Airlines, Transportation, Tourism, Hospitality sectors, followed by Retail may hold their IT projects but can expect an aggressive push for cost reduction from vendors, but increased demand for cyber security and contact centres in the near term
Merger and acquisition risks
The Company acquired multiple companies in the past years. M&As and its integrations, by nature, involve risks like failure to achieve strategic objectives, offset financial loss, cultural and financial integration etc.