The Indian stock market opened higher on Friday (October 9, 2026), with IT stocks trading nearly 3% higher in early trade following TCS’s quarterly results. The Nifty 50 opened at 22,314.95 and rose 0.5% to 22,339.50. The BSE Sensex opened at 71,776.67, up 183.43 points from its previous close.

The rebound in the benchmark indices comes despite the U.S. administration announcing the suspension of the employment-based green card process for eight major Indian IT companies on Thursday (October 8, 2026). These include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies and Capgemini. Washington also stated that the U.S. Department of Labor (DOL) would not accept new Permanent Labor Certification (PERM) applications or proceed with pending ones.

In response to the U.S. administration’s decision, TCS said that since the company’s “PERM applications were in single digits for the last two years, TCS does not expect suspension of the program to impact its workforce strategy and customer engagement.”

Analysts noted that Indian IT stocks are already operating under pressure, and this additional regulatory development adds another layer of uncertainty for the sector. Sumit Singhania, head of research at Bajaj Broking, said the immediate impact would likely be felt through higher hiring and compliance costs for the affected IT companies, particularly as they may need to rely more on local talent and subcontracting. He added that the development could put further pressure on operating margins in the near term.

IT stocks rally

In early trade on Friday, the IT index rose 3%, with TCS shares rising 4% following the announcement of its second-quarter (July-September) earnings. The company recorded a consolidated net profit of ₹13,884 crore for the quarter ended September, up 4% from the previous quarter. Consolidated revenue from operations rose 1.3% to ₹73,188 crore on a sequential basis.

Other major IT stocks also gained, with Infosys rising 2.71%, Wipro gaining 3.35% and HCL Technologies rising 3.03%.

IT sector analysts suggested that while Wall Street ended lower as chipmakers came under pressure after OpenAI’s annualised revenues were reported to be $20 billion below the company’s earlier projection, the weakness in AI and chipmaker stocks provided a boost to IT and software companies, helping Indian IT stocks rally.

PERM suspension didn’t rattle stocks

The PERM suspension had little impact on IT stocks on Friday, as it primarily affects H-1B visa holders, and companies were already beginning to hire more locally.

Sushovan Nayak, an analyst in IT research at Anand Rathi, noted that DOL data showed these firms had largely exited the PERM process already. Combined filings fell from 2,962 in 2023 to just four in 2025, with TCS’s filings declining from 1,318 to zero, Cognizant’s from 741 to zero, Wipro’s from 611 to zero, and Infosys reporting no filings since the 2025 financial year.

Mr. Nayak added that the suspension bars a channel these companies barely use. As a result, the cost is more likely to be a weaker retention lever for senior onsite staff with pending cases than an impact on margins.

However, analysts noted that the key risks in the near to medium term would be the potential impact on onsite staffing, U.S. wage costs and near-term delivery, which will be closely monitored in the coming days.

“Structurally, the action accelerates the AI-led shift to offshore and agentic delivery, decoupling revenue from onsite headcount. Knee-jerk sell-offs are entry points,” Mr. Nayak added.