The last trading day of the week witnessed a spectacular surge in the Indian stock market. When the market opened on Friday, October 9, there was a slight slowdown in the opening minutes, but soon the whole atmosphere changed with buyers. At 9:16 am, the Sensex rose 321 points to 71,914, while the Nifty also rose 117 points to 22,349. After this, the market saw some fluctuations, but the indices started moving cautiously again. By 10:30 am, the Sensex jumped 900 points to 73,408, while the Nifty gained 260 points to trade near 22,500. IT companies played the biggest role behind this growth.
A sharp recovery in the market after initial fluctuations
This surge in the market was led by IT sector stocks. Almost all stocks in the IT index, including Tata Consultancy Services (TCS), Infosys and Coforge, were trading in the green. The biggest gainer was in shares of TCS, which surged 4.67 percent to Rs. 2,173 was reached. Apart from this, Infosys, Coforge, Persistent Systems and Wipro saw gains of over 3 percent. Shares of HCL Tech and Tech Mahindra also gained more than 2 percent. Everyone was surprised to see this huge buying by investors, as this buying was happening amid news of sanctions from the US.
TCS’ response to US PERM ban
In fact, the US Secretary of Labor has taken a major decision by suspending the Permanent Labor Certification (PERM) program for Indian IT companies. The US Department of Labor will no longer accept new labor certification applications related to Infosys, TCS, Wipro and HCL Tech. Work on already pending files has also been stopped. The market was apprehensive that the move would result in heavy losses for the companies.
But on the morning of October 9, TCS clarified its stand on the issue. The company said it will fully comply with American regulations. TCS said its policy in the US is based on hiring local people, for which it adopts a campus hiring model there. The company has 31 offices and delivery centers in the US, where a large number of local staff are deployed. Along with this, it is planned to provide jobs to 15,000 additional local people in the next five years. The company’s PERM applications have been in the single digits over the past two years, so the suspension will not have a significant impact on its operations.
15 percent increase in profits, huge jump in AI business
The most solid reason for this rise in the stock was TCS’s strong results in the second quarter. The company’s net profit for the July-September 2026 quarter rose nearly 15 percent year-on-year to Rs. 13,884 crore, compared to Rs. 12,075 crores. The company’s revenue also increased by 11.22 percent to Rs. 73,188 crores.
The contribution of artificial intelligence (AI) to the company’s earnings was very significant. About 10 percent of TCS’s total revenue comes from the AI business. The company’s annual estimated AI revenue increased from $2.6 billion to $3.1 billion. According to Chief Operating Officer Aarti Subramaniam, earnings from AI are growing at the fastest pace in sectors such as banking, financial services, manufacturing and life sciences.
Two major international deals, dividends to shareholders
Along with the strong results, the company also made two major strategic deals. TCS has entered into a 5-year partnership with Porsche (Porsche AG) and signed an agreement to acquire its consulting company MHP. In addition, Best Buy’s India-based center will be converted into an AI capability center. CEO K. Kritivasan said these deals are completely different from normal IT services, which will help customers adopt AI on a large scale.
The company paid to its shareholders Rs. 1 per share at face value of Rs. Also declared another interim dividend of 12. The record date for this has been fixed on October 14, 2026, while the dividend will be paid to eligible shareholders on October 30, 2026. Due to these strong reasons, the fear of American visa ban was left behind and IT stocks led a strong rally on Dalal Street.
