Infosys’ recent deal wins have eased some concerns about the company’s financial performance. However, the continuous bank downgrades in the US are expected to have an impact on the IT services sector, particularly in terms of discretionary spending. Banks constitute a significant portion of IT services companies’ revenue basket, and the current situation is likely to create a pause in spending. As a result, the IT services sector is unlikely to be re-rated in the near future. The dust would need to settle on the situation with US banks for any positive surprises in terms of the order book.