TCS shares rally 5%; top 5 IT stocks add Rs 56,000 cr in m-cap, shrug off H-1B visa suspension

Shares of India's largest IT firm by revenue, Tata Consultancy Services Ltd (TCS), climbed 5 per cent in Friday's trade following its in-line September quarter results. The earnings lifted investor sentiment, helping the top five IT firms by market capitalisation (m-cap), including Infosys Ltd, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd, add a combined Rs 56,334 crore in market value so far.

Analysts noted that TCS' deal wins in Q2 were healthy at $9.6 billion, excluding Porsche and Best Buy. Annualised AI revenue has now reached $3.1 billion, accounting for over 10 per cent of revenue and signalling increasing monetisation of AI-led opportunities.

TCS shares climbed 4.73 per cent to Rs 2,173.55 apiece, adding Rs 31,857.26 crore to its m-cap, which swelled to Rs 7,82,700 crore. TCS is the sixth most-valued Indian IT firm. Infosys added Rs 10,206 crore to its m-cap as the stock rose 2.23 per cent to Rs 1,016.80. HCL Technologies rose 2.7 per cent to Rs 1,213.10, while Wipro added 2.65 per cent to Rs 162.80 and Tech Mahindra gained 1.76 per cent to Rs 1,522.

Investors largely shrugged off the US suspension of H-1B visa processing, following comments from NASSCOM and TCS that its impact, if any, would be limited.

SBI Securities noted that TCS reported steady growth in revenue and profitability even as the macro demand environment remained challenging, with non-critical discretionary projects lacking near-term return on investment under scrutiny. The primary opportunities are coming from vendor consolidation, enterprise system modernisation and AI integration, SBI Securities noted.

"TCS delivered a steady set of numbers for 2QFY27 despite headwinds and weaker North America. The company remains positive on the long-term growth outlook, driven by AI monetisation opportunities, a recovery in North America, strong BFSI and manufacturing technology spending, increasing AI-led transformation and large deal wins, rising technology intensity in GCCs/GBSs, expanding data centre and cloud adoption, and potential margin expansion from productivity gains and improved AI pricing," the domestic brokerage noted.

Choice International said AI-powered engineering and IT operations, alongside vendor consolidation, are supporting share gains in traditional services, although deflationary pricing pressure continues to be a key headwind for growth. It said near-term growth moderation and the margin trajectory were broadly balanced by healthy total contract value (TCV), improving AI monetisation and continued market share gains.