Goldman Sachs continues to bet on Indian IT; says demand drivers are intact

Despite the recent underperformance by Indian IT on concerns about valuations and peak margins, Goldman Sachs in its report said the demand drivers for the sector are intact.

The brokerage firm believes that cloud companies like Amazon Web Services (AWS), Microsoft Azure, Google Cloud, etc. are expected to see very strong growth. It estimates a 40% plus growth by AWS as well as Microsoft.

The Indian IT companies are technology partners to these cloud companies. So, when these companies do well, it will provide growth to the Indian IT companies as well.