Defying geopolitical headwinds from across the Atlantic, Indian information technology shares mounted an aggressive advance during trade on October 9, 2026. Market participants shrugged off regulatory curbs recently imposed by American authorities, choosing instead to focus on resilient balance sheets. The upward momentum across software counters was spearheaded by robust quarterly numbers from the software flagship of the Tata Group, which set a constructive tone for the wider industry.
Nifty IT Shrugs Off US Headwinds in Strong Morning Surge
During morning trade, the Nifty IT index recorded a sharp spike of at least 3.75 percent, touching an intraday peak of 28,776.75. Even as the session matured, the gauge maintained an advance of 2.4 percent to sit at 28,394.95. Sector bellwether TCS commanded the market rally after jumping by more than 6 percent, setting off a wave of risk-on sentiment across institutional and retail desks.
Gains were distributed widely across large-cap and mid-tier technology firms. Infosys advanced by more than 3.4 percent, while Wipro and HCL Tech posted spikes close to 4 percent before paring some gains. Other prominent software players, including Coforge, Persistent Systems, LTIMindtree, and Mphasis, each chalked up rallies approaching 4 percent. Meanwhile, Tech Mahindra gained in excess of 2.70 percent, and OFSS added as much as 2.4 percent. While share prices subsequently settled into gains ranging between 1 percent and 4 percent, the broader bullish posture across the technology basket remained well intact.
TCS Earnings Provide Strong Anchor Across Key Metrics
Market confidence was largely underpinned by the second-quarter financial performance of TCS, which aligned neatly with broader market expectations. The IT heavyweight posted a consolidated net profit of Rs 13,884 crore for the second quarter of FY27, representing a sequential expansion of 4 percent compared to the net profit of Rs 13,349 crore reported in the preceding quarter. When measured against the Rs 12,075 crore profit posted in the identical quarter of the prior financial year, net earnings surged by 14.98 percent, comfortably beating street projections on a yearly basis.
Topline metrics also demonstrated steady execution. Consolidated revenue climbed to Rs 73,188 crore in Q2FY27, marking an increase of 1.26 percent quarter-on-quarter and 11.23 percent year-on-year. For context, revenue stood at Rs 72,275 crore in Q1FY27 and Rs 65,799 crore in Q2FY26. Revenue in constant currency terms edged up by 0.5 percent on a sequential basis, meeting consensus expectations, while international revenue in constant currency rose 1.2 percent sequentially. Furthermore, the company recorded annualized artificial intelligence revenue of $3.1 billion, crossing the threshold of 10 percent of its total turnover.
PERM Certification Freeze and Industry Implications
The sectoral rally arrived on the heels of major regulatory actions undertaken by the Donald Trump administration in Washington. Under its "America First" policy framework aimed at shielding domestic employment, the administration barred eight technology giants from submitting fresh applications under the Permanent Labor Certification, commonly known as the PERM program. The suspension targets Indian firms TCS, Infosys, Wipro, and HCL Technologies, alongside global peers Cognizant, Capgemini, Microsoft, and Adobe.
While the decision poses hurdles for Indian engineers seeking green cards in the United States, its net financial implications for software exporters remain difficult to quantify. Offering perspective on the development, Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, highlighted the operational nuance behind the policy change. Radhakrishnan noted, "The decision does not suspend existing H-1B employment, so the immediate operational impact may be limited; however, an extended suspension could complicate employee retention and mobility and increase localisation, recruitment and compliance costs."
Visa Dependencies and the Upcoming Earnings Calendar
Indian personnel remain the backbone of the American specialized talent pool, accounting for 71 percent of all H-1B visa beneficiaries in the United States. Data compiled as of September 30, 2026, revealed that Amazon held the largest volume of H-1B visas at 9,337, followed directly by TCS with 4,450. Infosys held 4,113 visas, while Apple held 3,879. Microsoft accounted for 3,688 visas, Cognizant for 3,510, HCL for 1,516, Wipro for 1,175, and Capgemini for 1,074.
Despite these extensive ties to US work authorizations, equity investors chose not to discount tech shares following the green card suspension. Strong execution from TCS has raised hopes for healthy scorecards across peers in the coming days. The earnings pipeline shows HCL Tech scheduled to unveil its numbers on October 12, followed by Tata Technologies on October 14. Wipro and Tech Mahindra will report on October 15, while L&T Technology Services is slated for October 19. Coforge and Infosys are set to announce on October 23, with Kfin Tech wrapping up the schedule on October 26.
