Archive · 9 Oct 2026
US Labor Actions, AI Concerns and TCS Results Put IT Stocks in Focus
The US government announced new limits on some companies’ applications for a worker-permanent-residency program.
Several large Indian technology companies were named, and the department said it would pause new applications from them.
NASSCOM said Indian IT firms already rely less on H-1B visas and hire more workers locally in the United States.
Analysts said the changes could raise costs and make investors more cautious.
Shares of Infosys and Wipro fell in the United States before recovering.
Moves in AI-related stocks and news about OpenAI were also mentioned as possible reasons for the recovery.
Investors are also watching results from TCS.
TCS reported $9.6 billion in deal wins and said its AI business generated more than 10% of revenue.
Analysts nevertheless pointed to modest growth and signs of continued pressure on the stock.
The US Labor Department said it would suspend Microsoft and Adobe from the PERM program amid active federal investigations.
It also said it would not accept or process new applications from Cognizant, Infosys, Capgemini, Wipro, HCL Technologies and TCS.
NASSCOM said Indian IT companies have reduced H-1B reliance and expanded US local hiring; analysts warned of potential higher costs and near-term volatility.
Infosys and Wipro US-listed shares recovered after falling, as AI-sector disclosures and broader market moves were also cited as possible influences.
TCS reported September-quarter deal wins of $9.6 billion and AI revenue above 10%; analysts flagged modest growth and technical weakness.
- Who
- The US Labor Department, Microsoft, Adobe and Indian IT firms including Infosys, Wipro, HCL Technologies and TCS.
- What
- The department announced PERM-related restrictions, while investors assessed their potential impact alongside AI developments and TCS results.
- When
- The labor department announcements came Thursday evening; the article also discusses TCS's September-quarter results and market moves on Thursday.
- Where
- The United States and Indian equity markets.
- Why
- The Labor Department linked the action against Microsoft and Adobe to multiple active federal investigations; investors are assessing regulatory, business and market implications for IT companies.
Limited exposure and possible recovery
Costs and ongoing pressure
Impact of US labor restrictions
Limited exposure and possible recovery
NASSCOM said Indian IT companies have cut H-1B reliance, expanded local hiring and have limited movement from H-1B visas to permanent residency through PERM.
Costs and ongoing pressure
An analyst said affected firms may face higher hiring and compliance costs, rely more on local talent and subcontracting, and see near-term margin pressure.
TCS outlook
Limited exposure and possible recovery
TCS's results were described as largely in line with expectations, with $9.6 billion in deal wins and AI contributing more than 10% of revenue.
Costs and ongoing pressure
Analysts cited 0.5% quarter-on-quarter constant-currency growth, possible plateauing productivity and technical weakness; one warned of downside if the stock closes a week below Rs 2,000.
- Labor Department action
- Microsoft and Adobe were suspended from the PERM program; new applications from named companies would not be accepted or processed.
- Companies named for application processing
- Cognizant, Infosys, Capgemini, Wipro, HCL Technologies and TCS.
- NASSCOM position
- Indian IT companies have reduced H-1B dependence and expanded local US hiring; movement from H-1B visas to permanent residency through PERM is limited.
- TCS deal wins
- $9.6 billion, around the midpoint of analysts' projected $9 billion to $10 billion range.
- TCS AI revenue
- The AI vertical contributed more than 10% of revenue.
- TCS quarterly growth
- Constant-currency growth was 0.5% quarter-on-quarter.
- TCS technical levels cited
- Immediate support was identified at Rs 2,000–2,020; a weekly close below Rs 2,000 could open a decline to Rs 1,850–1,750, according to an analyst.