-Donald Trump Strict Action: America suspended 8 big IT companies from the process related to Green Card.
-The market got support from TCS's better results and buying after its fall.
Mumbai . US President Donald Trump (Donald Trump Strict action) Despite the strict action of the administration, there was a strong rise in the shares of Indian information technology companies on Friday. The US has suspended 8 big IT companies including TCS, Infosys, Wipro and HCL Tech from the Permanent Labor Certification Program linked to the Green Card. There were fears that this decision would have a negative impact on the Indian stock market, but the market opened with gains on Friday. There was heavy buying in shares of IT companies also. Nifty IT index rose 3.31 percent to 28,654.70.
TCS shares jumped 4.62 percent
TCS shares registered a rise of 4.62 percent on Friday. At the same time, shares of Infosys rose by 3.12 percent, Wipro by 3.31 percent, HCL Tech by 3.27 percent and Tech Mahindra by 2.19 percent. This rise is also important because there was heavy selling in the stock market on Thursday. The Sensex had fallen 1,045 points or 1.44 percent, while the Nifty had recorded a decline of 1.64 percent. After this fall, on Friday investors bought shares of many companies including IT.
Why did shares rise despite US sanctions?
The Trump administration has suspended TCS, Infosys, Wipro, HCL, Cognizant, Capgemini, Microsoft and Adobe from the Permanent Labor Certification Program. this program America (Donald Trump Strict action) is an important part of the process of obtaining a green card on the basis of job. This action may delay the cases of some foreign workers applying for green cards through the companies concerned. However, the suspension does not mean that the companies' US business will be closed or all their H-1B visas will be cancelled. The important question for investors is how much impact this decision will have on companies' earnings, relationships with customers and future employee recruitment. Due to this action, investors did not sell on a large scale in early trading.
TCS assured 15,000 jobs
TCS issued a statement on Friday clarifying that the suspension from the Permanent Labor Certification Program is not expected to have any material impact on its US hiring strategy or working with customers. According to the company, its number of permanent labor certification applications has been less than 10 each year for the past two years. TCS has also reiterated plans to hire 15,000 additional employees in the US over the next five years. The company said that local talent is being given priority in its recruitment strategy. This indicated to investors that TCS's dependence on this program was limited. Microsoft had also earlier clarified that most of its H-1B applications were related to already employed employees. Permanent labor certification and H-1B are separate processes. Therefore, the ban related to green card cannot be considered as a ban on visas of all foreign workers.
TCS profit increased by 15 percent to Rs 13,884 crore
A major reason for the rise in shares of IT companies was the better quarterly results of TCS. The consolidated net profit of the company in the second quarter of the financial year 2026-27 stood at Rs 13,884 crore. The profit in the same period last year was Rs 12,075 crore. In this way an increase of about 15 percent was recorded in profits. The company's income also increased by 11.2 percent to Rs 73,188 crore. Apart from this, the estimated annual income of artificial intelligence related businesses increased from $2.6 billion in the previous quarter to about $3.1 billion. This is more than 10 percent of the company's total income. However, the company's total contracts were valued at $9.6 billion, while quarterly revenue growth was only 0.5 percent. In such a situation, better results are being considered as a positive sign, but all the challenges of the IT sector are not over yet.
After huge fall, buying also provided support
Thursday's big fall was also a major reason behind the rise in the stock market on Friday. After continuous decline, shares of many companies were available at relatively low prices. In such a situation, investors started buying keeping in mind the future prospects. In the stock market it is called buying after a fall or technical bounce. Due to this reason, there was a rise in the shares of IT companies also.
Relief from falling crude oil prices
Crude oil prices also softened in the international market on Friday (Donald Trump Strict action). Brent crude oil fell 1.31 percent to $ 102.91 per barrel. At the same time, American West Texas crude oil fell 1.14 percent to $ 90.55 per barrel. The fall in crude oil prices has reduced concerns about inflation and companies' costs. This also provided support to the stock market. Overall, TCS's better quarterly results despite the US sanctions, the company's US hiring plan, limited reliance on the Permanent Labor Certification Programme, buying after the last fall and softening of crude oil prices were the main reasons for the rise in IT stocks on Friday.