Mumbai, October 9, 2026: Indian equity markets staged a strong recovery on Friday, driven by a sharp rally in information technology stocks. The Nifty 50 rose around 1.15%, while the BSE Sensex gained approximately 1.08%, recovering from heavy losses in the previous trading session. Tata Consultancy Services (TCS) emerged as one of the top gainers following the release of its September-quarter results.
TCS Shares Jump More Than 5%
Shares of Tata Consultancy Services climbed around 5.4% after the company reported its quarterly results, highlighting growth in its artificial intelligence (AI) business and international operations. The performance boosted investor confidence in the IT sector.
IT Index Leads the Market Rally
The Nifty IT index surged approximately 3.3%, making technology stocks the strongest contributors to the broader market recovery.
Other major IT stocks also advanced as TCS’s results improved sentiment across the sector, encouraging investors to return to technology shares.
TCS Revenue Rises 11.2%
TCS reported consolidated quarterly revenue of approximately ₹73,188 crore, representing an 11.2% year-on-year increase. The figure was slightly higher than analysts’ expectations.
The revenue growth highlighted the company’s continued business expansion, although investors remain focused on the pace of demand recovery across the global IT services industry.
Net Profit Climbs 15%
The company’s net profit increased approximately 15% year-on-year to ₹13,884 crore.
Investors welcomed the improvement in profitability, even as sequential revenue growth remained relatively modest. The results helped support the stock’s strong performance during Friday’s trading session.
AI Revenue Reaches $3.1 Billion
TCS said its annualised revenue from artificial intelligence services increased nearly 20% to $3.1 billion, compared with approximately $2.6 billion in the previous quarter.
The growth underscores the increasing importance of AI-related services for India’s major IT companies. Investors are closely monitoring whether rising demand for AI solutions can generate sustained revenue growth and new business opportunities.
Broader Markets Also Recover
The rally extended beyond large-cap stocks. Mid-cap shares gained around 1.4%, while small-cap stocks rose approximately 0.6%.
The gains indicated an improvement in investor sentiment across the broader market, although the sustainability of the recovery will depend on corporate earnings, global economic conditions and domestic investment flows.
Markets Recover After Sharp Sell-Off
Friday’s gains followed a difficult previous session, during which benchmark indices fell to multi-month lows.
Strength in IT stocks and some easing of investor concerns helped drive the rebound. However, crude oil prices above $100 per barrel continued to pose risks for Indian equities, as higher oil prices can increase India’s import bill and put pressure on inflation.
US Green Card Restrictions Fail to Derail IT Rally
Indian IT stocks advanced despite the United States suspending several technology companies from participating in the PERM labour-certification programme, which forms part of the employment-based Green Card process.
Analysts said the immediate business impact could remain limited because major Indian IT companies have reduced their dependence on immigration-related hiring pathways through increased local recruitment in the United States and offshore delivery operations.
TCS has also indicated that the suspension is not expected to affect its workforce strategy or client engagements.
Investors Turn Their Attention to Upcoming Earnings
With TCS kicking off the earnings season, investors are now looking ahead to results from Infosys, HCLTech, Wipro and Tech Mahindra.
Their quarterly performances are expected to provide further insight into IT services demand, AI-related revenue growth and client technology spending.
The broader direction of Indian markets will also depend on crude oil prices, foreign investment flows, global bond yields and developments in the international economy.
Source: Reuters
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