IT Stocks Rally For Fourth Day: Why Are Infosys, TCS, Tech Mahindra Shares Rising? Know Key Reasons

Indian IT stocks, including TCS, Infosys, HCLTech, and Tech Mahindra, surged 11.7% in the week ending October 16, their biggest gain in 18 years, driven by strong earnings and investor interest. Tech Mahindra and HCLTech reported better-than-expected quarterly results. The rally contrasted with a 4.5% drop in the Nasdaq Composite, as US AI stocks faced a selloff. The Nifty IT index outperformed broader indices, but challenges like automation and competition persist.

The U.S. Department of Labor (DOL) suspended PERM applications for Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The action follows investigations into alleged fraud and worker exploitation. No fixed dates or legal basis were announced, but the suspension may last up to 180 days. Employers are advised to review compliance and prepare for audits.

Indian IT stocks rose on Friday, with Tech Mahindra up 7.11%, Infosys 3.71%, TCS 3.19%, and Wipro 4%, driven by strong quarterly results and reassessment of global AI-linked stocks. The Nifty IT index gained 2.8%. Investors focused on earnings performance and potential deal improvements, despite broader market mixed trends.

Tech Mahindra and Wipro shares rose 6.93% and 4.54% respectively after reporting Q2 earnings. Tech Mahindra's profit grew 33% YoY, while Wipro's profit declined but revenue increased. The Nifty IT index gained 2.87%, outperforming broader markets. Tech Mahindra announced a 1:1 bonus share issue. Wipro's deal bookings fell but margins improved.

Indian IT stocks rallied on 15 October, driven by strong quarterly results, AI optimism, and a weaker rupee. HCLTech led gains with a 3.5% rise, while TCS, Tech Mahindra, Infosys, and Wipro also advanced. The Nifty IT index climbed 2.5%, extending its 3-day rally to 9%. HCLTech reported Q2 revenue of $3.72B, exceeding estimates, and raised FY27 guidance. TCS's net profit rose 15%, with AI revenues accounting for over 10% of total revenue.

The Trump administration suspended Microsoft, Adobe, and six other tech companies from the PERM program, alleging misuse and displacement of American workers. Microsoft disputed the claims, stating most H-1B filings were for existing employees. The suspension may delay green card applications for foreign workers at these companies.