India tech giants struggle to shake off $115 billion rout

Earnings from India’s bellwether software services exporters have reinforced investor concerns about the sector’s growth prospects, signaling that the downturn in their stocks has further to run.

Infosys Ltd., the second-largest outsourcer, forecast annual sales growth below analysts’ estimates on Thursday, following a profit miss at smaller rival HCL Technologies Ltd. two days earlier. Both stocks declined, with the latter hit by at least half a dozen analyst downgrades. A gauge of the sector plunged more than 5% on Friday to close at its lowest level since June 2023.