TCS, Infosys, Wipro, HCLTech: Nifty IT rallies over 3% despite US suspending eight firms from green-card programme

IT sector stocks like Tata Consultancy Services (TCS), Infosys, HCL Tech, Mphasis, among others rallied after the opening bell on Friday, October 9, as the latest United States green card programme suspension update for eight major technology and IT outsourcing companies failed to impact Indian firms.

NSE data showed that the Nifty IT index was up 3.3% to hit a morning market high of 28,670.25 points, in comparison to 27,736.60 points at the previous equity market close.

Investors were also reacting to TCS’s Q2 earnings report during Friday’s trading session after the bellwether stock posted mid-double-digit revenue gains with an increase in net profit, while margins remained under pressure.

US Labour Secretary Keith Sonderling on Thursday announced that eight companies, namely Adobe, Microsoft, Infosys, TCS, Wipro, HCL Tech, Cognizant, and Capgemini, are now suspended from the PERM programme.

Latest reports showed that the US President Donald Trump’s administration has suspended these companies from the US government’s Permanent Labour Certification Programme, also known as PERM, which is an important stage for foreign workers looking to get green cards in America.

This comes as part of the wider crackdown where the current US government is looking to target fraud and protect American jobs.

Indian companies were in the focus of investors after this development, as the United States is a primary market for both clients and workers for IT services majors like Infosys, TCS, Wipro, and HCL Tech.

During the intraday session on October 8, IT stocks rallied, lifting the index as much as 2.2% as investors were preparing for TCS to kick off the Q2 earnings season and shed some light on the sectoral demand trends. The Nifty IT index closed lower amid the broader stock market crash.

IT stocks in focus today

What did TCS say?

In response to the update, TCS, in an official statement on October 9, said that the company will comply with any directive from the US Department of Labor as its workforce strategy in the US is anchored in hiring local talent, supported by a robust campus recruitment model.

TCS also said that there are 31 offices and delivery centres across the United States, and the company plans to hire 15,000 people in the US over the next five years to further add to the local workforce.

“Our PERM applications were in single digits in the last two years, and hence we do not expect the suspension of the program to impact our workforce strategy and customer engagements,” said TCS in its official statement.

US suspension details

United States Labour Secretary Keith Sonderling, during his announcement, said that the federal government has suspended major IT outsourcers like Microsoft and Adobe from its PERM green card programme in an effort to protect jobs and target frauds in the country.

The Trump administration has been pursuing several paths of cracking down on foreign citizens living or working in the United States, and to improve the country’s immigration programme.

US Vice President JD Vance also said that there are no companies in the United States that have “abused” the system more than Microsoft.

Adding to the announcement, Labour Secretary Keith Sonderling also said that the PERM suspension will also apply to Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini, where the United States will not accept any “new or process any pending” Permanent Labour Certification applications involving these firms.

“I am hereby suspending from the Permanent Labour Certification Programme some of the largest IT outsourcing firms in the world: Cognizant, Infosys, Tata, Wipro, HCL, and Capgemini,” said Labour Secretary Keith Sonderling in his official media address.

TCS Q2 earnings

Amid the green card buzz, Indian equity market investors will also focus on and react to TCS’s latest quarterly earnings report on Friday, October 9, as the bellwether stock can potentially move the index based on the sentiment.

TCS announced its Q2 results for FY27 after market operating hours on October 8, where the IT major recorded a 15% year-on-year (YoY) growth in its consolidated net profit to ₹13,884 crore, with key support from revenue gains and deals in the period.

NSE filings also showed that TCS’s revenue from core operations advanced 11.2% to ₹73,188 crore in the September quarter, from ₹65,799 crore in the same period a year earlier.

With the total contract value (TCV) surging to $9.6 million, the company’s overall AI revenues were at $3.1 billion in the second quarter, crossing 10% of the overall revenues in the period.

In Q2, the deal with Porsche AG and Best Buy remain the two major strategic deal wins in the focus of investors, as TCS’s management cited overall momentum and demand in the industry for the gains.

While the operating profits increased 4.6% YoY to ₹18,815 crore, the IT company’s EBITDA margins contracted by 162 basis points to 25.70% in the quarter ended September 2026, from 27.32% in the corresponding quarter a year earlier.