Indian IT Stocks In Blockbuster Rally; HCL Skyrockets 7%; TCS, Infosys, Coforge Jumps 3-6%; Eyes On Q2 Results, Dividends

Indian tech stocks are witnessing a mind-blowing blockbuster rally on October 13, after HCL Technologies posted healthy Q2 results. This came after TCS also reported earnings in-line with estimates. Investors faith in upcoming tech earnings has heightened amidst geopolitical risks, recovery in rupee and crucial suspension of US green card programme. However, experts believe that the PERM suspension will not be fatal for Indian tech companies.

IT Stocks Strong Rally

Nifty IT index zoomed by 4.4% to trade around 29,582, at the time of writing. The index has touched an intraday high of 29,738.80. All tech stocks have witnessed strong rally.

HCL Technologies led the rally with over 7% gains, followed by TCS and Coforge that surged by 6% and 5% respectively. Infosys also climbed by 3.3%, while Persistent Systems zoomed by 3%. Tech Mahindra and Wipro rallied by 3.8% and 3.4% respectively. Other IT stocks also traded higher by 3% to 4%.

The biggest reason is the healthy HCL Technologies Q2 results.

Large-Cap Q2 Results:

HCL posted 11% QoQ and 21.2% YoY growth in net profit to Rs 5,132 crore in Q2FY27, while its revenue surged by 11.5% YoY and 3% QoQ to Rs 35,620 crore. In constant currency, revenue growth stood at 2.3% QoQ and 2.6% YoY. Advanced AI revenue came in 28.4% QoQ and 78% YoY in constant currency to $219 million. Also, HCL’s new deal wins stood at $3,258 million.

This came after TCS also posted healthy performance. The Tata Group giant posted a consolidated net profit of Rs 13,884 crore and revenue of Rs 73,188 crore in the quarter under revenue. In constant currency, revenue growth was in line with estimates of 0.5% QoQ, driven by BFSI, manufacturing, and technology services. Annualized AI revenue stood at $3.1 billion.

PERM Suspension Shocks Not Fatal

Meanwhile, experts believe that tech companies will not likely have major material impact due to US President Donald Trump’s PERM suspension.

As per analysts at Kotak Institutional Equities, the US administration has suspended new and pending PERM applications involving TCS, Infosys, HCLT, Wipro, Cognizant and Capgemini. PERM is the labor-certification stage for many employer-sponsored green-card applications and can also support qualifying H-1B extensions beyond six years. The action reinforces an unfavorable immigration policy direction but has limited operational relevance. Indian IT companies have substantially localized their US workforces, while employees affected by the suspension represent a small subset of the remaining visa-dependent pool. We do not expect a meaningful impact on delivery or earnings.

PERM is the labor certification stage for many employer-sponsored green card applications. Employers must obtain a prevailing-wage determination, conduct the prescribed recruitment and demonstrate that sufficient qualified and available US workers do not exist for the permanent position. A certified PERM allows the employer to proceed to an I-140 immigrant petition with the USCIS. It does not itself provide work authorization or permanent residence.

Accordingly, Kotak’s analysts added, “We expect the H-1B employee pool to decline further as companies limit fresh filings and rely more on localized delivery. This broader workforce shift has increased the use of local hires and subcontractors for immediate project requirements. Higher subcontractor usage may pressure near-term costs, while greater offshoring should provide an offset over time.”

The PERM suspension adds little incremental pressure within this transition. Analysts noe said, “A more material risk would arise only if immigration restrictions extend to existing work authorization, client-site deployment or outsourcing. The present measure does not reach that threshold.”

IT Sector Q2 Results: Dates & Dividends

Beyond that, tech stocks will continue to be in focus due to their Q2 results. After TCS and HCL, focus will shift on Tata Technologies who will declare its earnings on October 14. While Wipro and Tech Mahindra will present their Q2 on October 15. Further, L&T Technology Services will declare its Q2 on October 19, Coforge along with Infosys on October 23, and Kfin Tech on October 26.

TCS declared its second interim dividend of Rs 12 per share for FY27 and has fixed October 14th as the record date. Earlier, TCS paid up to Rs 12 first interim dividend for FY27 in July 2026.

Along the similar lines, HCL Tech declared its third interim dividend of Rs 12 per share for FY27 and fixed October 16th as the record date. Earlier, HCL Tech rewarded investors with first and second interim dividend of Rs 24 and Rs 12 per share in April and July.

Infosys has already declared its proposal for first interim dividend announcement for FY27 on October 23. Wipro has not made any proposal of dividends yet. Furthermore, L&T Technology will consider interim dividend for the half year ending September 30, 2026.

But the most awaited reward will be from Tech Mahindra. As per the regulatory filing, Tech Mahindra said on October 15, the board will consider both interim dividends and bonus shares.

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