Shiv Nadar’s HCL Technologies has been regarded as India’s third largest IT Company by observing the revenue for the last four years. Though the market had never witnessed this change so far, Wipro had reserved its position as the third-largest IT Company per market capital.

It is proved that no other firm has ever dashed ahead of Wipro by a more vigorous margin than HCL Tech, having a market cap of over Rs 2.5 lakh crore. If we compare Wipro, its market cap is Rs 2.2 lakh crore. It is worth commendable that HCL Tech beat Wipro not because its shares had surged this year. This is because both the companies’ stocks have seen a massive drawdown in 2022, and HCL Tech’s shares have fallen much lower than Wipro’s. Also, all IT stocks fell this year, with Wipro being the worst performer.

HCL Tech is also marginally leaner than Wipro in operations, with a headcount of 2.1 lakh against Wipro’s 2.5 lakh. All these occur due to political factors at international levels, such as high attrition rates, supply chain issues, soaring inflation and the Russia-Ukraine war. This has poured cold water on the Indian IT sector, which beheld an extraordinary boom in the past two years.

Consequently, this led to JP Morgan downgrading the Indian IT sector to ‘underweight’ – the investment bank marked that the margin continues to stay under stress and revenue peaked. The slowdown would get worse by FY23 – June results reflect this reality too.