IT stocks have created the most pressure in the market today. Nifty IT index is trading down by about 3% on 31 October. Results of big tech companies were released in the US, after which pressure is being seen in IT stocks today. Meta Platforms has released weaker results than expected. At the same time, while releasing the results for the July-September quarter, Microsoft's income growth guidance has also been weaker than expected. This was the reason that yesterday there was pressure in the US market as well and Nasdaq also closed down by about 1.3%.

Sales of Facebook, Instagram's parent company Meta Platforms grew 19% year-on-year in the September quarter. During this period, the company's net income has increased by about 35% from $11.6 billion to $15.7 billion. However, the company's net income growth has been the lowest since the second quarter of 2023. The company is preparing to increase spending on infrastructure in 2025. The company said that the number of daily active users has reached 3.29 billion. It has also shown a growth of 5% on an annual basis. However, this figure is also being said to be weaker than analyst estimates.

Meanwhile, Microsoft's quarterly income has been better than expected. But the company has expected weak growth contrary to expectations. In the September quarter, the company's revenue grew 11% year-on-year to $24.67 billion. In the same quarter last year, it was at $22.29 billion. Microsoft had estimated revenue growth to be between $68.1 and $69.1 billion this quarter. This is a growth of 10.6% on an annual basis. Analysts had estimated it to be $69.83 billion. The company said that there is a delay in providing data center infrastructure by external suppliers. This is the reason why the company is unable to meet the demand. After a long slowdown, the overall demand of IT companies has improved. But, discretionary spending has not yet returned to growth. However, cloud spending was expected to increase, which is expected to increase discretionary spending in the future. This is the reason why all 10 stocks of the Nifty IT index in the Indian stock market today are seeing a decline of 2-5%. Infosys, Tech Mahindra and TCS are seeing the biggest decline. In the second quarter, Indian IT companies have accepted some improvement in demand. Discretionary spending has still not returned. Nuvama has said in a recent report that cloud spending is expected to increase in the financial year 2025. It was normal during the financial year 2024. Due to this, discretionary spending is also improving during the second half and financial year 2026. The brokerage firm said that Indian IT companies will benefit from such a big strength in cloud growth. In the second quarter, the IT sector has shown stable performance on the growth and margin front. But, there has been a slight decrease in deal wins and the outlook for the second half is also weak. In some cases, such as in Europe's automotive and aerospace industries, pressure has been seen. Pressure is already there in retail and telecom. Another brokerage firm JM Financail said that it is optimistic about the deal pipeline on IT companies. Growth momentum for the financial year 2026 may be affected due to low bookings, elections in the US and geopolitical tensions. To accelerate growth in the financial year 2026, it is necessary to increase discretionary deals in the short term.