IT stocks today: Shares of Indian IT companies like Infosys, Wipro, Tata Consultancy Services (TCS), HCL Tech and Persistent Systems, are likely to remain in focus on Friday, October 9, as several global and domestic developments could influence investor sentiment towards the sector.
IT stocks are likely to remain in focus following Thursday evening’s developments around H-1B visas and TCS’s September-quarter results, which marginally surpassed market expectations.
“Today, the Indian IT sector finds itself at the epicenter of a massive tug-of-war, caught between a severe regulatory crackdown in the United States and a spectacular earnings breakout from industry bellwether Tata Consultancy Services,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.
What is Permanent Labour Certification Programme?
US President Donald Trump’s administration has suspended these companies from the Permanent Labour Certification Programme, which enables employers to seek green cards for workers on H-1B visas.
The US administration alleges that these IT giants have abused the H-1B visa infrastructure to undercut American wages, pointing to hundreds of thousands of labor certifications secured over the last decade.
While these companies can still deploy temporary H-1B visa holders, they are now blocked from processing pending green card applications or initiating new ones. This regulatory blockade effectively severs the pathway to permanent US residency for their sponsored foreign talent.
The decision was announced by US Labour Secretary Keith Sonderling, alongside Vice President JD Vance, who heads the US Anti-Fraud Task Force.
In recent years, technology companies have reduced their reliance on H-1B visas by increasing local recruitment and shifting some operations to nearby countries. Around 57,000 new H-1B visas were approved for Indian nationals last year, marking a 28% decline from FY24. Indians accounted for approximately half of all new H-1B visa approvals in the previous fiscal year, Mint reported.
In September last year, the US raised the annual fee for new H-1B visa applicants to $100,000.
Why it is a setback for Indian IT companies?
Anuj Gupta, SEBI Registered Research Analyst, believes that this development is negative for IT stocks, as it could put pressure on margins and weigh on revenue growth going forward.
Gupta added that major Indian IT companies derive more than 50% of their revenue from the US market, making them particularly vulnerable to any slowdown in technology spending or changes in demand from American clients.
“If these headwinds persist, IT companies could face weaker revenue growth and margin pressure, potentially weighing on their stock performance,” he said.
According to Srivastava, this is a major operational headwind. The inability to offer green card sponsorships threatens onsite talent retention. To mitigate the inevitable spike in employee attrition in the United States, these firms will either have to offshore more client projects back to India or hire local American engineers at significantly higher compensation levels. Both scenarios threaten to inflate operational costs and severely compress future profit margins.
TCS Q2 results likely to remain another trigger
Tata Consultancy Services (TCS) reported a consolidated net profit of ₹13,884 crore in the September 2026 quarter, registering a 14.45% year-on-year increase from ₹12,131 crore in the corresponding quarter last year. On a sequential basis, net profit rose 3.45% from ₹13,420 crore in the previous quarter.
The company’s revenue for Q2FY27 stood at ₹73,188 crore, marking an 11.20% year-on-year growth in rupee terms and a 1.3% increase over the June 2026 quarter.
TCS reported a total contract value (TCV) of $9.6 billion during the quarter. Key developments included a five-year strategic partnership with Porsche AG, the acquisition of MHP, Porsche’s Germany-based management and IT consulting subsidiary, and an agreement to transition Best Buy’s Global Capability Centre (GCC) in India to TCS and transform it into an AI Capability Centre (AICC).
Alongside its September-quarter results, the Tata Group IT major declared a dividend of ₹12 per share after considering its unaudited financial results for the quarter.
“Crucially for long-term equity valuations, the company is successfully monetizing next-generation technologies. TCS announced that its annualized artificial intelligence revenue run rate has crossed the $3.1 billion mark, now constituting over ten percent of the company’s total revenue stream. Coupled with a massive total contract value of $9.6 billion secured during the quarter, the financial health of the business appears highly resilient,” Srivastava added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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