Markets Turn Green Despite H-1B Visa Concerns As TCS, Infosys Lead IT Rally

Indian equity markets staged a strong rebound on Friday after two sessions of sharp losses, with information technology stocks leading the recovery as investors welcomed Tata Consultancy Services' September-quarter results and looked past fresh US immigration restrictions.

At 12 pm, the Sensex was up 829.20 points, or 1.16%, at 72,422.44, while the Nifty advanced 274.50 points, or 1.23%, to 22,506.30. The recovery came after the benchmarks had suffered a sharp sell-off in the previous session.

The rally was led by IT stocks, with TCS, Infosys, HCL Technologies and Tech Mahindra gaining up to 5%. The Nifty IT index climbed more than 3%, emerging as the top sectoral performer.

TCS Results Drive IT Stock Rally

TCS shares rose around 5% after the company reported its September-quarter results, with investors responding positively to growth in its artificial intelligence-related business and international operations.

The company reported a 15% year-on-year increase in consolidated net profit to ₹13,884 crore for the September quarter. Its annualised AI revenue also crossed $3 billion, reinforcing investor confidence in its AI-led growth strategy.

The gains extended across the IT sector, with Infosys, HCL Technologies and Tech Mahindra also advancing. The rally suggested that investors were placing greater weight on quarterly performance and business growth prospects than on immediate concerns around US immigration policy.

Why US Visa Curbs Failed To Derail Sentiment

The IT rally came despite fresh regulatory uncertainty after the Trump administration suspended several technology companies, including TCS, Infosys, Wipro and HCL Technologies, from the US Permanent Labour Certification programme, a key step in the employment-based green-card process. The development is separate from the administration's previously announced $100,000 fee for certain H-1B visa petitions.

Investors appeared reassured by indications that the latest restrictions may have a limited immediate impact on business operations. TCS said its suspension was unlikely to affect its workforce strategy or customer engagements, noting that its PERM applications had been in single digits over the past two years.

The sector has also been adjusting to tighter US visa conditions, including through greater use of offshore delivery and local hiring. This has helped investors assess the potential impact of the latest measures without immediately assuming a significant disruption to revenue or client relationships.

Crude, Rupee And Global Cues Offer Relief

Beyond IT earnings, other factors supported the market recovery. Brent crude fell 1.11% to $103 per barrel, offering some relief to India, which relies heavily on imported oil and remains vulnerable to higher energy costs and inflation.

The rupee appreciated 23 paise to ₹96.65 against the US dollar, supported by a softer US currency and likely intervention by the Reserve Bank of India.

Global cues were also supportive, with Asian markets trading higher and US stock futures gaining as much as 0.5%. Meanwhile, a slight cooling in the global bond sell-off helped bring yields down from multi-year highs, easing some pressure on emerging-market equities.

Broader Market Buying Improves Sentiment

Buying extended beyond IT stocks, with ITC, Adani Ports, HDFC Bank, Power Grid, Bajaj Finserv, Tata Steel, Trent, SBI, Maruti Suzuki and Kotak Mahindra Bank gaining up to 3%.

The Nifty IT index rose around 3%, while FMCG, PSU banks, private banks, realty and financial services also advanced more than 1%. India VIX, the market's volatility gauge, eased nearly 4%, signalling some moderation in near-term investor anxiety.

However, the rebound follows a period of significant weakness, and the sustainability of the recovery will depend on corporate earnings, crude oil prices, global bond yields and developments around US immigration policy. For now, TCS's results have provided a much-needed trigger for buying, allowing IT stocks to lead Dalal Street's recovery despite the regulatory overhang.