What happened
Alphabet, Microsoft, Meta and ServiceNow are scheduled to report on 29 October, with Apple and Amazon on 30 October. Doubts about whether AI investment is generating enough revenue have been a recurring market theme in October.
Why this matters
Indian IT services firms such as TCS, Infosys and HCLTech earn much of their revenue from US clients. When those clients cut or delay technology budgets, Indian IT firms feel it quickly. At the same time, AI demand can create new deal wins for these firms. The tension between the two is what the market is pricing.
Action plan
Read the capex guidance and the cloud revenue growth in the big tech results, not only the headline EPS beat.
For Indian IT holdings, track deal wins, large-deal TCV and headcount commentary in the next quarterly results.
Avoid concentrating in a single AI theme. Diversify across IT, banking and consumption.
Bottom line
Big tech's results will set the tone for Indian IT for the next few weeks. Focus on whether AI spending is converting to revenue for the companies you own, not just whether the AI narrative sounds strong.