Information technology stocks on Friday surged over 5% after India’s biggest software company TCS posted a strong profit in September quarter.
TCS shares surged 5.46% while the Nifty IT index surged by 3.39%. Infosys, Wipro and Tech Mahindra are among the top gainers. The gains came despite concerns over US restrictions on employment-based Green Card applications involving major technology companies.
Tata Consultancy Services (TCS) shares jumped more than 5% on Friday, after its September-quarter earnings boosted investor sentiment and triggered a rally across information technology stocks.
The stock gained 5.46% to Rs2,189.40 on the National Stock Exchange (NSE), touching an intraday high of Rs2,194.90.
The Nifty IT index climbed 3.39% to 28,675.65, becoming the best-performing sectoral index.
TCS Q2 FY27 profit rises 4%
TCS reported consolidated net profit of Rs13,884 crore for the September quarter, up 4% sequentially from Rs13,349 crore.
Excluding an exceptional loss in the preceding quarter, profit increased marginally from Rs13,849 crore.
Revenue from operations rose 1.3% quarter-on-quarter to Rs73,188 crore, while operating margin remained steady at 24%.
The company reported total contract value of $9.6 billion and annualised artificial intelligence (AI) revenue of $3.1 billion, exceeding 10% of overall revenue.
The positive earnings response coincided with a broader market recovery.
At 10.20 am, the Sensex advanced 740 points to 72,333.30, while the Nifty 50 gained 243 points to 22,474.90.
Infosys, Wipro and Tech Mahindra rally despite US visa curbs
All 10 Nifty IT constituents traded higher during the session.
LTIMindtree rose 3.62% to Rs4,056.70, while Wipro gained 3.48% to Rs163.89.
Coforge and Mphasis advanced 3.32% each, reaching Rs1,874.60 and Rs2,379.80, respectively.
Persistent Systems climbed 3.18%, Infosys gained 2.83%, Tech Mahindra rose 2.49%, and HCL Technologies added 2.37%.
Meanwhile, the US government announced the suspension of several technology companies from its Permanent Labor Certification Program (PERM) amid investigations into alleged visa fraud and employment practices.
TCS maintained that the restrictions would not materially affect its US operations, citing fewer than 10 PERM applications over the past two years.
The company also reaffirmed plans to recruit 15,000 additional employees in the United States over five years.