Nifty IT stocks opened green on Friday, buoyed by positive Q2 results from Tata Consultancy Services (TCS), an unexpected turnaround in US visa curbs for major IT firms and OpenAI missing its revenue marks. 

Nifty IT gained over 1000 points to reach a high of 28,776.75 from a previous close of 27,736.60. The broader market sentiment was also positive, with the Nifty 50 bunch jumping back up by over 250 points after hitting its 52-week low the previous session. 

IT stocks rallied today, with TCS shares jumping 5.84 per cent to hit a high of ₹2197.30. Wipro gained nearly 3 per cent to an intraday high of ₹164.25. HCLTech and Tech Mahindra shares gained roughly 3 per cent. Other mid-cap stocks like Coforge and Persistent Systems also rose by around 3 per cent. 

Three reasons why IT stocks are rallying today

  1. TCS Q2 results: Defying expectations of an AI-driven letdown, the Indian IT giant reported a net profit of ₹13,884 crore for Q2 fiscal 2027, up 14.9 per cent from ₹12,075 crore in Q2FY26. Operating margins stood at 24 per cent and net margin at 19 per cent amid global volatility. The company’s strong performance boosted investor sentiment, raising hopes that the larger IT sector can navigate the AI-led disruptions. 

    CEO and MD K. Krithivasan said the company witnessed growth across international markets and most industry segments. The company is also exploring a new category of partnerships like The Porsche and Best Buy deals to expand its AI industrial scale. 

  2. PERM suspension: The US Labour Department on Thursday announced that it would stop accepting  and processing new Permanent Labour Certification (PERM) applications from Infosys, Capgemini, Wipro, TCS, and HCLTech. US Labour Secretary Keith Sonderling claimed that these companies secured more than 230,000 H-1B visa approvals and over 100,000 permanent labour certifications.

    While this was initially expected to increase hiring and compliance costs, the Indian IT industry body NASSCOM stepped in and said that the companies had already reduced their H-1B visa hiring amid higher costs.

    TCS also clarified that its PERM applications were in the single digits over the past two years and added that it plans to hire 15,000 local employees from the US over the next five years. 

  3. OpenAI misses its revenue mark:  The ChatGPT maker’s annualised revenue for September was only $50 billion, after the company told investors that its revenue run rate was near $70 billion. This further fuelled speculation about the AI sector and eased concerns that AI companies were growing rapidly enough to overtake traditional IT services. 
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