Morgan Stanley sees downside risks to India's IT firms' FY26 earnings

Nifty IT index .NIFTYIT slides 1.8% to weigh on Nifty 50 .NSEI, which is down 0.2%

NIFTYIT shed 15% in March quarter, dragging NSEI 0.5% lower

Rising concerns of potential U.S. economy slowdown and inflationary pressures due to Trump tariffs and weakness in client spending weigh on Indian IT cos, which earn significant revenue from the U.S.

IT firms' FY26 rev outlook likely to be in-line or disappointing, say analysts led by Morgan Stanley's Gaurav Rateria

MS cautions further downside risks to cos' FY26 earnings cannot be ruled out

Says IT firms staring at higher risks in uncertain macro environment

Nine of NIFTYIT's 10 constituents fall; Tata Consultancy Services TCS.NS slips 1.6%, Infosys INFY.NS down 2.5%