Real estate prices have surged significantly in recent quarters, with some areas experiencing nearly 100% increases, while earnings have not kept pace. This has led to a slowdown in housing demand, exacerbated by increased supply and stagnant income growth. Analysts suggest that developers should reduce home prices to stimulate demand. Despite potential interest rate cuts by the RBI, the high prices may continue to deter buyers, who are increasingly opting for rental properties. Major cities like Mumbai, Pune, and Delhi-NCR have seen declines in housing sales, and developers are expected to offer discounts to attract buyers during the festive season.

The technology sector is experiencing sustained momentum in mergers and acquisitions (M&As) driven by factors such as strong cash reserves, attractive valuations, and opportunities in the AI space. Companies, including IT services and SaaS firms, are actively acquiring to enhance capabilities in emerging technologies. GrowthPal, an AI-driven platform, highlights the focus on US and European markets. Recent notable acquisitions include L&T Technology Services acquiring Intelliswift, Infosys acquiring 'in-tech' and InSemi, and HCL Tech acquiring ASAP Group. The trend is expected to continue as firms seek to accelerate revenue growth.

Hyderabad's unlimited Floor Space Index (FSI) is criticized for leading to unplanned urban development, contrasting with other Indian cities like Bengaluru, which have strict FSI norms. Experts argue that unlimited FSI could make Hyderabad less attractive for future development, especially in the IT sector. The article highlights the need for considering social infrastructure and potential disruptions before granting FSI permissions, emphasizing the importance of planned urban development.

The Indian IT services industry is optimistic about the potential benefits of Donald Trump's presidency, anticipating an acceleration in economic recovery and increased offshoring. Experts, including Peter Bendor Samuel of Everest Group, suggest that the denial rates for H-1B visas are unlikely to rise significantly, maintaining current levels of professional immigration. The BFSI sector has shown early signs of recovery, with expectations of improved investment due to a favorable interest rate environment. The Trump administration's business-friendly measures and less restrictive AI regulations are expected to further boost the industry. Meanwhile, the European market faces challenges, with hopes for resolution in the Russia-Ukraine conflict to aid recovery.

The Indian IT industry anticipates a hiring increase due to Donald Trump's return to power in the US, which is expected to improve the demand environment. Despite potential visa restrictions, companies plan to execute more work from India, leveraging its skilled workforce. Major IT firms like Tech Mahindra, Tata Consultancy Services, Infosys, and Wipro have already reported headcount growth. The sentiment among IT firms is optimistic, with expectations of a revived US economy under Trump's leadership, leading to increased technology spending and headcount additions.

Indian IT firms are strategically positioning themselves to capitalize on the global demand for AI by setting up Centres of Excellence, collaborating with companies like Nvidia, and upskilling employees. Despite not yet seeing significant revenue from AI, these firms are engaging in numerous AI-related projects and are optimistic about future business opportunities. Tata Consultancy Services, for instance, has seen a substantial increase in AI engagements. Unlike some global tech giants, Indian IT companies are not facing selling pressure due to their less investment-heavy approach.

E-commerce giants like Amazon and Flipkart are under scrutiny for allegedly using dark patterns to manipulate consumer behavior, prompting calls for mandatory algorithm disclosure and stronger data privacy laws. The Confederation of All India Traders (CAIT) emphasizes the need for transparency in pricing algorithms to prevent misleading discounts. The Department of Consumer Affairs has identified common dark patterns and issued guidelines to curb such practices. Trade bodies advocate for regular AI audits to ensure ethical use of technology in e-commerce platforms.

Indian IT companies, including Infosys, Wipro, Persistent Systems, and Coforge, are increasingly engaging with Global Capability Centres (GCCs) in India. These companies are adopting a build-operate-transfer model to help clients set up and operate GCCs, later transferring ownership back to the clients. The strategy involves providing skilled human resources and managing technology work, reflecting a growing trend of technology insourcing by global firms. This engagement is seen as a strategic move to capitalize on the substantial growth of GCCs in India.

Indian IT services companies are aggressively competing for outsourcing contracts, leading to margin pressures due to reduced bidding prices. Despite stable pricing in recent quarters, the lack of significant revenue from generative AI and a slowdown in digital projects have resulted in commoditization in some technology areas. Tata Consultancy Services and Infosys are actively engaged in generative AI projects, though these have not yet become major revenue drivers. Analysts predict continued pricing pressure until digital projects gain momentum.

The Indian IT industry is likely to experience mid-single digit revenue growth in the current fiscal year, similar to pre-pandemic levels. Global IT firms, including Accenture, Cognizant, and Capgemini, have issued lower revenue growth guidance for 2024, suggesting a continued subdued demand environment. Accenture's reduced guidance from 2-5% to 1-3% for the fiscal year 2024 reflects constraints in client IT spending due to uncertain macroeconomic factors. This trend is expected to affect Indian IT firms' growth prospects in the upcoming quarters.