Sensex Jumps 1,109 Points as IT Firms, HDFC Bank Lead Market Rebound

U.S. President Trump suspended several Indian IT companies, including Cognizant, Infosys, Tata, Wipro, and HCL, from a labor certification program, citing job displacement. The U.S. is India's major market, with a $58.4B goods trade deficit in 2025. Trump aims to reduce this imbalance, pressuring India to open protected sectors. Indian Finance Minister Sitharaman acknowledged the trade talks' challenges.

Bumble (BMBL) surged 56.7% to $5.96 after agreeing to a $6.05/share private takeover by Ithaca Holdings. Other movers: Fermi (FRMI) +22.5%, Enerflex (EFXT) +13.6%, BigBear.ai (BBAI) +9.1%, MongoDB (MDB) +6.8%, Xtend AI (XTND) +6.6%.

HDFC Bank, Axis Bank, and Kotak Mahindra Bank reported strong deposit growth in Q2 FY27, driven by RBI's FCNR(B) swap window. HDFC Bank's deposits rose 4.9% sequentially and 19% year-on-year to Rs 33.27 trillion. Axis Bank saw a 5.8% sequential and 20.7% year-on-year increase in deposits to Rs 14.52 trillion. Kotak Mahindra Bank's deposits grew 23.2% year-on-year and 13.7% sequentially to Rs 6.51 trillion. All banks benefited from FCNR(B) deposits and international branch lending.

Indian IT stocks rallied on Oct 13, led by HCL Tech (+7%) after its Q2 results showed 21.2% YoY net profit growth. TCS, Infosys, and others also gained 3-6%. Kotak analysts say US PERM suspension has limited impact. Upcoming Q2 earnings and dividends are in focus.

The US government suspended eight tech companies, including Tata Consultancy Services, Infosys, Wipro, HCLTech, Cognizant, Microsoft, Adobe, and Capgemini, from the PERM Green Card program. The move aims to address alleged misuse of foreign-worker programs. Existing H-1B visas remain valid, but the suspension may delay permanent residency for affected employees. Companies report limited PERM applications, suggesting a potential minimal impact on their operations.

Indian IT stocks rebounded, with HCLTech, TCS, Infosys, and Wipro rising up to 5%. HCLTech's Q2 profit rose 21.18% YoY to Rs 5,132 crore, beating expectations. Revenue increased 11.51% YoY to Rs 35,620 crore. The weaker rupee and strong deal bookings supported the sector's rally.