TCS, Infosys, Wipro, HCL Tech Rally Up to 5% Despite US Green Card Restrictions: Know Why

9 Oct 2026 , 11:40 AM

Indian IT stocks traded higher on Friday, October 9, 2026, despite the US government’s suspension of several technology and IT services companies from the Permanent Labour Certification Programme (PERM), a key step in the employment-based Green Card process.

At 11:30 AM IST, Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies and Tech Mahindra were trading in positive territory. TCS led the gains following its Q2 FY27 results, which showed higher quarterly profit, revenue growth and annualised AI revenue of $3.1 billion.

The broader IT sector also rebounded, with the Nifty IT index rising more than 3% during Friday’s intraday session, according to market data. Investors appeared to be weighing attractive valuations of Indian IT companies in comparison with rich valuation of Global Chip Making Companies.

IT Stocks Today: Share Prices on October 9, 2026

The following prices and percentage changes are as of 11:30 AM IST on NSE.

IT stock	Share price	Change
TCS	₹2,189.60	+5.47%
Infosys	₹1,023.60	+2.67%
Tech Mahindra	₹1,522.70	+1.79%
Wipro	₹163.45	+3.20%
HCL Technologies	₹1,210.50	+2.85%

Intraday prices are time-sensitive and may change throughout the trading session.

Why Are Indian IT Stocks Rising Despite US Green Card Restrictions?

1. TCS Q2 results boost sector sentiment

TCS emerged as a key driver of the IT rally after reporting its September-quarter results. Revenue from operations increased 11.2% YoY to ₹73,188 crore, while consolidated net profit rose 4% sequentially to ₹13,884 crore.

The company also reported annualised AI revenue of $3.1 billion and total contract value (TCV) of $9.6 billion for the quarter.

The results offered investors a positive earnings trigger at a time when concerns about US immigration policy and technology spending have weighed on sentiment. TCS’s performance helped support gains across other IT stocks as well.

2. PERM suspension does not automatically cancel existing H-1B visas

The PERM process is used by employers seeking labour certification as part of sponsoring eligible foreign workers for employment-based permanent residency. The reported suspension affects the affected companies’ access to this process, including the handling of relevant new and pending applications.

It is important to distinguish PERM from the H-1B visa programme. A suspension from PERM does not, by itself, cancel existing H-1B visas or automatically stop affected companies from delivering services to clients.

The more immediate concern relates to employees seeking employer-sponsored permanent residency, including uncertainty over application timelines and long-term employment plans. Potential consequences for recruitment, retention and staffing costs will depend on how the restrictions are implemented and how long they remain in place.

3. Reduced dependence on immigration pathways may limit the immediate impact

Indian IT companies have adapted their workforce models over time through local hiring in the US, offshore delivery centres and a mix of onshore and offshore project teams.

These arrangements may reduce the immediate operational disruption from restrictions on the Green Card process. Reuters reported that analysts viewed the near-term impact as potentially limited, given changes in how Indian IT companies staff their US operations.

However, the longer-term implications should not be dismissed. Companies could face additional costs if they need to expand local recruitment, retain employees for longer periods without permanent residency or adjust staffing arrangements to meet client requirements.

4. A broader market rebound supports buying

The IT rally also came alongside a recovery in the wider Indian equity market following heavy selling in the previous session.

The Nifty 50 and Sensex rose on Friday, while the Nifty IT index gained more than 3% during intraday trading. TCS was among the leading contributors to the sector’s advance.

This broader recovery may have encouraged buying in IT shares, although the supplied stock-price snapshot alone cannot establish how much of each company’s gain came from market-wide factors versus company-specific developments.

5. Investors are balancing policy risks against AI and enterprise demand

The PERM restrictions introduce uncertainty around talent mobility and employee retention, but they do not remove the existing client relationships, contracts or technology delivery capabilities of the affected companies.

Investors are also assessing opportunities in AI-led transformation, cloud services, cybersecurity and enterprise modernisation. TCS’s latest quarterly update highlighted AI revenue growth and substantial deal wins, providing a company-specific reason for optimism.

Still, a positive trading session does not mean the immigration restrictions carry no risk. The eventual impact will depend on the policy’s duration, the number of affected employees and companies’ ability to adapt their workforce strategies.

What Does the US PERM Suspension Mean for Indian IT Companies?

The reported action covers several large technology and IT services companies, including Infosys, TCS, Wipro, HCL Technologies and Cognizant. Microsoft, Adobe and Capgemini were also named in media reports.

What PERM does: The programme requires employers to complete a labour-certification process for certain employment-based Green Card applications. Employers generally must demonstrate that qualified, willing and available US workers are not available for the relevant position and that hiring a foreign worker will not adversely affect comparable US workers.

What the suspension means: According to reports, the US Department of Labour suspended the affected companies from the PERM process, restricting the handling of relevant permanent labour certifications.

Impact on Indian employees: Workers whose employment-based Green Card applications depend on PERM may face delays and uncertainty over permanent residency. The implications will vary depending on each employee’s immigration status and circumstances.

Potential business implications: Companies may need to reassess talent retention, recruitment and workforce allocation. Additional local hiring or changes to staffing arrangements could increase costs over time.

Why Microsoft is facing scrutiny: US officials have made allegations concerning the use of employment-based immigration programmes, with Microsoft receiving particular attention. These allegations should not be treated as established findings of wrongdoing.

What remains uncertain: The duration and scope of the restrictions, possible legal developments and the companies’ responses will influence the eventual impact on their operations.

What Should Investors Watch Next?

Investors tracking Indian IT stocks should focus on the following developments:

• Policy clarification: Any further announcement from the US Department of Labour could change the scope or duration of the restrictions.
• Employee retention and hiring costs: Companies’ ability to retain skilled workers and manage US staffing costs will be important.
• IT spending trends: Demand for discretionary technology projects and enterprise transformation could influence revenue growth.
• AI revenue conversion: Investors will watch whether AI-related opportunities translate into sustained revenue growth and profitability.
• Quarterly results and management commentary: Updates from Infosys, Wipro, HCLTech and other IT companies may provide further insight into demand and operating conditions.

Conclusion

Indian IT stocks gained on October 9 despite the US PERM suspension, with TCS leading the rally after its Q2 FY27 results. The broader market recovery and expectations of limited immediate disruption to client operations also helped support sentiment.

However, the restrictions remain a potential headwind for employee mobility, permanent residency applications and future hiring costs. Investors should distinguish the short-term share-price reaction from the longer-term business implications and monitor further policy announcements and company disclosures.

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