On Friday, October 9, 2026, Indian information technology stocks experienced a strong rally as robust second-quarter results from Tata Consultancy Services improved market sentiment, overshadowing worries surrounding US PERM suspensions. Equities such as TCS, Infosys, HCLTech, and Wipro moved upward as market participants balanced earnings expansion, the demand for artificial intelligence, and potential immigration hurdles.
The Nifty IT index rose over the course of the trading session. TCS shares advanced by more than 4%, and Wipro saw an increase of nearly 3%. Both HCLTech and Tech Mahindra gained roughly 3% apiece, alongside upward movements for midcap firms Coforge and Persistent Systems. Market participants found reassurance in TCS earnings alongside the minimal immediate fallout from the PERM restrictions.
For the July–September quarter, Tata Consultancy Services posted a consolidated net profit of Rs. 13,884 crore, marking an annual increase of about 15%. Total revenue came in at Rs. 73,188 crore, reflecting an 11.2% growth rate compared to the same period in the previous year. Additionally, the company declared a second interim dividend of Rs. 12 per share for the 2026-27 fiscal year.
K. Krithivasan, the chief executive and managing director of TCS, drew attention to broad-based growth spanning international regions and a majority of industry verticals. He additionally referenced major transformation agreements with Porsche and Best Buy aimed at scaling up artificial intelligence integration. Industry reports further indicated that the annualized revenue run rate for TCS’s AI initiatives has surpassed USD 3.1 billion, providing an additional boost to investor trust.
At the same time, the US Department of Labor temporarily paused the processing of fresh PERM applications for various tech firms, encompassing TCS, Infosys, Wipro, HCLTech, Cognizant, and Capgemini. This administrative pause also impacted Microsoft and Adobe amid ongoing federal inquiries. Because PERM programs facilitate employment-based green card processing, the action sparked anxieties regarding the long-term human resource strategies of the impacted corporations.
Nonetheless, TCS pointed out that its PERM submissions had stayed within single digits over the preceding two-year window. Consequently, the enterprise anticipates minimal interference with its American workforce operations and client relationships. Furthermore, its objective to hire 15,000 domestic workers across 31 US locations over a span of five years is expected to lower its overall reliance on traditional immigration channels.
Trade body NASSCOM noted that Indian tech companies have successfully lowered their dependence on H-1B visas while simultaneously ramping up local hiring inside the United States. In a separate development, disclosures indicating that OpenAI’s September annualized revenue reached nearly USD 50 billion—falling short of an earlier projection of USD 70 billion—reignited discussions concerning the pacing of AI sector growth and market competition.
This upward market movement highlights a resurgence of optimism regarding tech sector revenues and AI-driven prospects, even though US immigration regulations continue to pose a lingering threat. Investors plan to watch forthcoming financial reports, domestic recruitment initiatives, and client spending patterns to determine whether the sector can sustain its upward momentum.
Also Read: AI Stocks in Focus as Meta’s Muse Intensifies Competition Among AI Assistants
