Archive · 9 Oct 2026
Indian IT Stocks Rise Despite US PERM Suspension
The United States stopped some big technology companies from using a program that helps foreign workers seek green cards.
This raised concerns about Indian technology companies that serve US clients.
But their shares went up when India’s stock market opened.
Analysts say these companies now rely less on sending workers to the United States on H-1B visas.
They can do some work remotely, place workers in nearby countries, and hire people who live in the United States.
TCS said it has used the green-card program very little recently.
Experts said any extra costs may be manageable, though hiring new workers could affect costs.
Investors also responded positively to recent results from TCS and forecasts from Accenture.
The United States suspended several major IT companies, including Indian firms, from the Permanent Labour Certification Programme.
Indian IT shares rose in morning trading, with the Nifty IT index up about 3% and TCS gaining more than 5%.
Analysts said remote delivery, nearshoring and increased hiring of US workers have reduced firms’ reliance on H-1B visas.
TCS said its PERM applications were in single digits over the previous two years and announced plans to hire 15,000 people in the US over five years.
Analysts described the possible effects on earnings and margins as limited, while noting that new hiring could add costs.
- Who
- The US administration suspended PERM participation for several major global IT companies, including Indian firms such as Infosys, Wipro and TCS.
- What
- Indian IT stocks rose despite concern that the suspension could affect companies’ ability to sponsor green-card applications for some foreign workers.
- When
- The article reports the market reaction after the US announcement and cites TCS’s statement on Friday, October 9.
- Where
- The suspension concerns US employment-based green-card sponsorship; the reported share gains were in the Indian market.
- Why
- Analysts said Indian IT firms have reduced reliance on H-1B workers through remote delivery, nearshoring and local US hiring, limiting the expected operational impact.
Limited expected impact
Potential costs and disruption
Effect of the PERM suspension
Limited expected impact
Analysts and TCS said firms’ low dependence on PERM applications, local hiring and alternative delivery models mean the suspension is unlikely to materially affect operations or customer engagements.
Potential costs and disruption
The article says the suspension blocks US clients from sponsoring green-card applications for foreign nationals working with the affected companies and could create challenges for future hiring.
Margins and earnings
Limited expected impact
An analyst said companies could absorb a 50–100 basis-point margin impact and potentially pass higher hiring costs on to clients.
Potential costs and disruption
The article notes that new hiring could affect margins in the near term, although it does not report a quantified impact from the suspension.
- Market move
- The Nifty IT index rose about 3%; Wipro, Infosys and HCL Technologies gained around 2–3% by about 11:30 a.m.
- TCS shares
- TCS rose more than 5% in the reported trading session.
- US revenue exposure
- Indian IT companies derive 50–60% of their revenue from the United States, according to the article.
- TCS US hiring plan
- TCS said it intends to hire 15,000 people in the United States over the next five years.
- TCS PERM applications
- TCS said its PERM applications were in single digits in the preceding two years.
- Sector workforce
- An analyst said the sector has a headcount of more than 2 million and that the additional affected requirement was in the hundreds or thousands.
- Nifty IT performance
- The index was down around 26% so far in 2026 and about 10% above its 52-week low, as stated in the article.