TCS, Infosys, Wipro, HCL Tech, Coforge: IT stocks in focus over multiple reasons; check details
Indian IT stocks are in focus after US labour programme developments, a recovery in Infosys and Wipro ADRs, and TCS Q2FY27 results. Check key triggers and technical levels.
- Oct 9, 2026,
- Updated Oct 9, 2026 8:36 AM IST
Shares of Indian IT companies such as Tata Consultancy Services, Infosys, HCL Technologies Ltd, Coforge Ltd, Wipro and Persistent Systems Ltd will remain in focus on Friday, October 9, amid a mix of global and domestic developments that could drive moves in the sector amid ongoing volatility and a market correction.
The main triggers are the latest H-1B and PERM-related developments in the US, the recovery in the American depositary receipts (ADRs) of Infosys and Wipro after an initial fall, and TCS's September quarter earnings, which were reported after market hours on Thursday.
H-1B and PERM developments Indian IT stocks are expected to react primarily to developments announced by the US Labor Department on Thursday evening. It said Microsoft and Adobe would be suspended from the Permanent Labor Certification Program, with the US Labor Secretary saying the action was linked to multiple active federal investigations.
The department also said it would not accept or process any new applications from companies including Cognizant, Infosys Ltd, Capgemini, Wipro Ltd, HCL Technologies and TCS.
Industry body NASSCOM said Indian IT companies had significantly reduced their dependence on H-1B visas and had steadily expanded local hiring to build a strong domestic workforce in the US. It also said the number of employees moving from H-1B visas to permanent residency through the PERM process was limited.
The immediate impact is likely to be felt through higher hiring and compliance costs for the affected IT companies as they may need to rely more on local talent and subcontracting, the development may add pressure to operating margins in the near term, said Sumit Singhania, Head of Research at Bajaj Broking.
"From a market perspective, Indian IT stocks may see some near-term volatility as investors assess the extent and duration of the regulatory impact. The key factor to watch will be how the situation evolves. Indian IT stocks are already operating under pressure, and this additional regulatory development adds another layer of uncertainty for the sector," he adds.
ADR recovery and AI-linked moves US-listed shares of Infosys and Wipro had fallen by up to 4 per cent each following these developments before recovering sharply from their lows. Wipro's ADR ended unchanged, while Infosys's ADR erased its losses and closed 1.1 per cent higher.
One possible factor behind the recovery was OpenAI's disclosure that its annualised revenue run rate stood at $50 billion, below the $68 billion figure reported earlier. The rise of OpenAI and artificial intelligence (AI) has been among the biggest factors behind the underperformance of India's software services providers.
The disclosure came amid a sell-off in AI and chipmaking stocks on Thursday, with Nvidia falling 3 per cent and Oracle declining more than 6 per cent. The rebound in IT ADRs may also have been supported by earlier disclosures from Indian IT companies highlighting their limited or no dependence on the H-1B programme.
It is worth noting that Indian IT companies have seen a sharp correction in recent months. Leading IT stocks are down 30-35 per cent in 2026 so far, while some key names have lost more than half their value from recent peaks.
TCS results in focus Indian IT stocks will also react to TCS's September quarter results. The company's performance was largely in line with expectations, with its AI vertical contributing more than 10 per cent of revenue and deal wins reaching $9.6 billion, around the midpoint of analysts' projected range of $9 billion to $10 billion. The Nifty IT index had held up better than other sectoral indices for much of Thursday before slipping amid the broader market sell-off and ending just below the flat line.
Revenue per employee continues to show signs of moderation. While the decline is not sharp, it suggests that productivity gains may have begun to plateau and could also reflect a softer pricing environment, said Manav Medewala, Research Analyst at Mirae Asset Sharekhan. Constant-currency growth was 0.5 per cent quarter-on-quarter (QoQ), raising concerns about whether AI is replacing existing revenue rather than generating incremental revenue, he pointed out.
TCS continues to trade below key daily, weekly and monthly exponential moving averages (EMAs). The persistent downward slope of these weekly moving averages confirms underlying selling pressure and indicates that minor pullbacks are routinely met with selling interest, said Hitesh Tailor, Technical Research Analyst at Choice Broking.
Momentum indicators reflect this weakness, with the relative strength index (RSI) hovering around 35-40, pointing to sustained negative momentum while remaining slightly above extremely oversold territory. While the Rs 2,000-2,020 zone acts as immediate psychological and structural support, a decisive weekly close below Rs 2,000 would signal a severe technical breakdown, opening the way for a decline to Rs 1,850-1,750, he said.
Shares of Indian IT companies such as Tata Consultancy Services, Infosys, HCL Technologies Ltd, Coforge Ltd, Wipro and Persistent Systems Ltd will remain in focus on Friday, October 9, amid a mix of global and domestic developments that could drive moves in the sector amid ongoing volatility and a market correction.
The main triggers are the latest H-1B and PERM-related developments in the US, the recovery in the American depositary receipts (ADRs) of Infosys and Wipro after an initial fall, and TCS's September quarter earnings, which were reported after market hours on Thursday.
H-1B and PERM developments Indian IT stocks are expected to react primarily to developments announced by the US Labor Department on Thursday evening. It said Microsoft and Adobe would be suspended from the Permanent Labor Certification Program, with the US Labor Secretary saying the action was linked to multiple active federal investigations.
The department also said it would not accept or process any new applications from companies including Cognizant, Infosys Ltd, Capgemini, Wipro Ltd, HCL Technologies and TCS.
Industry body NASSCOM said Indian IT companies had significantly reduced their dependence on H-1B visas and had steadily expanded local hiring to build a strong domestic workforce in the US. It also said the number of employees moving from H-1B visas to permanent residency through the PERM process was limited.
The immediate impact is likely to be felt through higher hiring and compliance costs for the affected IT companies as they may need to rely more on local talent and subcontracting, the development may add pressure to operating margins in the near term, said Sumit Singhania, Head of Research at Bajaj Broking.
"From a market perspective, Indian IT stocks may see some near-term volatility as investors assess the extent and duration of the regulatory impact. The key factor to watch will be how the situation evolves. Indian IT stocks are already operating under pressure, and this additional regulatory development adds another layer of uncertainty for the sector," he adds.
ADR recovery and AI-linked moves US-listed shares of Infosys and Wipro had fallen by up to 4 per cent each following these developments before recovering sharply from their lows. Wipro's ADR ended unchanged, while Infosys's ADR erased its losses and closed 1.1 per cent higher.
One possible factor behind the recovery was OpenAI's disclosure that its annualised revenue run rate stood at $50 billion, below the $68 billion figure reported earlier. The rise of OpenAI and artificial intelligence (AI) has been among the biggest factors behind the underperformance of India's software services providers.
The disclosure came amid a sell-off in AI and chipmaking stocks on Thursday, with Nvidia falling 3 per cent and Oracle declining more than 6 per cent. The rebound in IT ADRs may also have been supported by earlier disclosures from Indian IT companies highlighting their limited or no dependence on the H-1B programme.
It is worth noting that Indian IT companies have seen a sharp correction in recent months. Leading IT stocks are down 30-35 per cent in 2026 so far, while some key names have lost more than half their value from recent peaks.
TCS results in focus Indian IT stocks will also react to TCS's September quarter results. The company's performance was largely in line with expectations, with its AI vertical contributing more than 10 per cent of revenue and deal wins reaching $9.6 billion, around the midpoint of analysts' projected range of $9 billion to $10 billion. The Nifty IT index had held up better than other sectoral indices for much of Thursday before slipping amid the broader market sell-off and ending just below the flat line.
Revenue per employee continues to show signs of moderation. While the decline is not sharp, it suggests that productivity gains may have begun to plateau and could also reflect a softer pricing environment, said Manav Medewala, Research Analyst at Mirae Asset Sharekhan. Constant-currency growth was 0.5 per cent quarter-on-quarter (QoQ), raising concerns about whether AI is replacing existing revenue rather than generating incremental revenue, he pointed out.
TCS continues to trade below key daily, weekly and monthly exponential moving averages (EMAs). The persistent downward slope of these weekly moving averages confirms underlying selling pressure and indicates that minor pullbacks are routinely met with selling interest, said Hitesh Tailor, Technical Research Analyst at Choice Broking.
Momentum indicators reflect this weakness, with the relative strength index (RSI) hovering around 35-40, pointing to sustained negative momentum while remaining slightly above extremely oversold territory. While the Rs 2,000-2,020 zone acts as immediate psychological and structural support, a decisive weekly close below Rs 2,000 would signal a severe technical breakdown, opening the way for a decline to Rs 1,850-1,750, he said.