Indian IT stocks rallied on Friday, October 9, 2026, as strong TCS Q2 results lifted sentiment despite US PERM suspension concerns. TCS, Infosys, HCLTech and Wipro advanced as investors weighed earnings growth, artificial intelligence demand and potential immigration risks.
The Nifty IT index climbed during the session, with TCS gaining over 4% and Wipro rising nearly 3%. HCLTech and Tech Mahindra added around 3% each, while midcap companies Coforge and Persistent Systems also recorded gains. Investors appeared encouraged by TCS earnings and the limited immediate impact of PERM restrictions.
Tata Consultancy Services reported a consolidated net profit of Rs. 13,884 crore for the September quarter, representing approximately 15% year-on-year growth. Revenue reached Rs. 73,188 crore, rising 11.2% from the corresponding quarter last year. The company also announced a second interim dividend of Rs. 12 per share for financial year 2026-27.
TCS chief executive and managing director K. Krithivasan highlighted growth across international markets and most industry segments. He also pointed to the Porsche and Best Buy deals as transformation partnerships designed to expand artificial intelligence deployment. Reports also placed TCS's annualised AI revenue run rate above USD 3.1 billion, strengthening investor confidence.
Meanwhile, the US Department of Labor halted new PERM applications from several technology companies, including TCS, Infosys, Wipro, HCLTech, Cognizant and Capgemini. The move also affected Microsoft and Adobe amid ongoing federal investigations. PERM supports employment-based green card applications, raising concerns about long-term workforce planning for affected companies.
However, TCS indicated that its PERM applications remained in single digits over the past two years. The company therefore expects limited disruption to its US workforce strategy and customer engagements. Its plan to recruit 15,000 local employees across 31 US offices over five years could further reduce reliance on immigration pathways.
NASSCOM also said Indian technology companies had reduced their dependence on H-1B visas while expanding local US recruitment. Separately, reports that OpenAI's September annualised revenue approached USD 50 billion, below an earlier indication of USD 70 billion, renewed debate about AI industry growth and competition.
The rally signals renewed confidence in IT earnings and AI-related opportunities, although US immigration policy remains a risk. Investors will monitor upcoming quarterly results, local hiring plans and client demand to assess whether the sector's recovery can continue.
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