Sensex, Nifty snap eight-week slide as IT stocks shrug off US green-card freeze

Indian equities rebounded on Friday, with the Sensex and Nifty ending an eight-week losing streak as IT stocks rallied on strong quarterly results and investors appeared to look past the US government's suspension of major technology companies from a green-card programme.

The Sensex gained 879.09 points, or 1.23%, to close at 72,472.33, while the Nifty rose 288.65 points, or 1.30%, to settle at 22,520.45.

During the previous session on Thursday, the Nifty plunged 371.25 points, or 1.64%, to close at 22,231.80 after hitting an intraday low of 22,179.90, a fresh 52-week low and its lowest level of 2026. Foreign investors sold a net ₹12,943.58 crore of Indian equities on Thursday, while domestic institutional investors bought ₹10,703.11 crore.

“Domestic equities staged a relief rally, supported by value buying and short covering after the recent sharp correction. IT stocks outperformed on the back of a strong start to the Q2 earnings season and rising confidence in AI-driven revenue opportunities,” Vinod Nair, Head of Research at Geojit Investments Ltd, said.

IT stocks lead the rebound

The Nifty IT index rose 3.02%, with TCS gaining 3.85% and HCLTech advancing 3.38%. ITC was among the biggest Nifty gainers, rising 5.08%.

TCS reported a 15% year-on-year rise in second-quarter net profit to ₹13,884 crore, while revenue stood at ₹73,188 crore. Its annualised artificial intelligence revenue reached $3.1 billion, offering investors a fresh indication of demand for AI-related services even as the sector still faces questions over how the technology could reshape traditional outsourcing.

PERM suspension fails to dent sentiment

The market rally came a day after the US administration announced that it would stop accepting or processing new and pending permanent labour certification applications involving Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. The PERM programme is a step in the employer-sponsored green-card process and is separate from H-1B work visas.

TCS said on Friday that its PERM applications had been in single digits over the past two years and that it did not expect the suspension to affect its workforce strategy or client engagements. The company said it had built a local workforce across 31 US offices and delivery centres and planned to hire another 15,000 people in the country over the next five years.

Indian IT companies have increasingly expanded local hiring and delivery operations in the US, although the extent to which this will cushion the wider industry from the suspension remains uncertain. The move could still affect companies' ability to secure permanent residency for some employees.

Crude, volatility in focus

Brent crude traded around $102 a barrel on Friday, easing from the previous session's rise but remaining elevated amid tensions in the Gulf. Lower oil prices could ease pressure on India's import bill and inflation, although crude remained above $100.

Market breadth was positive, with 46 of the 50 Nifty constituents advancing.