On Friday, October 9, the Nifty IT index surged 3.3%, reaching a morning high of 28,670.25 points, up from 27,736.60 points at the previous equity market close. The rally was driven by gains in major IT names such as Tata Consultancy Services, Infosys, HCL Tech, and Mphasis, all of which rose after the opening bell. Investors focused on the United States’ suspension of eight technology and IT outsourcing companies from its green‑card programme, noting that the directive had no discernible impact on Indian firms. The index’s rise reflected a broader confidence in the sector amid the news that the US move would not affect Indian operations.

The United States Labour Secretary Keith Sonderling announced on Thursday that Adobe, Microsoft, Infosys, Tata Consultancy Services, Wipro, HCL Tech, Cognizant, and Capgemini are now suspended from the Permanent Labour Certification Programme (PERM). The Trump administration’s decision is part of a wider crackdown aimed at targeting fraud and protecting American jobs. The suspension means the US will not accept any new or pending PERM applications involving these firms, a move that has drawn attention from investors who view the United States as a primary market for both clients and workers for Indian IT majors.

In response, Tata Consultancy Services issued an official statement on October 9 stating that the company will comply with any directive from the US Department of Labor. TCS highlighted that its workforce strategy in the United States is anchored in hiring local talent, supported by a robust campus recruitment model. The company operates 31 offices and delivery centres across the US and plans to hire 15,000 people over the next five years. TCS added that its PERM applications were in single digits in the last two years, and therefore the suspension is not expected to impact its workforce strategy or customer engagements.

TCS also released its Q2 earnings for FY27 after market operating hours on October 8. The IT major reported a 15% year‑on‑year growth in consolidated net profit to ₹13,884 crore, driven by revenue gains and deals in the period. Revenue from core operations advanced 11.2% to ₹73,188 crore, up from ₹65,799 crore a year earlier. Total contract value surged to $9.6 million, while AI revenues reached $3.1 billion, representing more than 10% of overall revenues. Operating profits rose 4.6% YoY to ₹18,815 crore, but EBITDA margins contracted by 162 basis points to 25.70% from 27.32% a year earlier.

During the intraday session on October 9, IT stocks rallied, lifting the Nifty IT index as much as 2.2% in anticipation of TCS’s Q2 earnings. The intraday highs and gains for key players were as follows: TCS reached ₹2,193 with a 5.6% gain; Infosys hit ₹1,029.75 with a 3.2% rise; Wipro peaked at ₹164.28 with a 3.7% increase; HCL Tech climbed to ₹1,213.10 with a 3% gain; Mphasis reached ₹2,393 with a 3.8% rise; Persistent Systems peaked at ₹5,664 with a 3.5% gain; Coforge hit ₹1,884.10 with a 3.8% rise; Tech Mahindra reached ₹1,535.70 with a 2.6% gain; and OFSS peaked at ₹10,646 with a 2.3% gain. These figures were sourced from the NSE website as of the morning session.

The market reaction to the US suspension announcement and TCS’s earnings report underscored investor confidence in the resilience of Indian IT firms. Despite the broader stock market downturn, the Nifty IT index’s 3.3% rise reflected a belief that the US directive would not materially affect Indian companies’ workforce strategies or client engagements. The rally also highlighted the importance of TCS’s Q2 performance, with mid‑double‑digit revenue gains and a 15% rise in net profit, which reinforced the sector’s positive momentum amid regulatory uncertainties.