India, Oct. 17 -- How the stocks of Infosys Ltd. and Wipro Ltd. have moved today, a day after their quarterly results, is emblematic of a wider problem afflicting India's $283-billion IT services industry.

The Nifty IT index, a gauge of India's 10 largest IT firms is down 1.9% since bellwether Tata Consultancy Services Ltd. reported earnings that failed to match up to expectations. In contrast, over the same time, the broader NSE Nifty 50 has gained 2%. The quarterly results of TCS peers Infosys and Wipro were largely on point but offered little indication of a demand rebound in the second half of the fiscal.

That's a concern for investors in India's $283-billion IT services industry that has been battling tepid client spending in the U...