Indian Stocks Rally on October 9 as IT Shares Surge

Indian equities rebounded on Friday, October 9, 2026, as investors bought stocks following a sharp selloff in the previous session, lifting the Sensex and Nifty 50. Gains in information technology, banking, financial services and consumer goods shares supported the recovery, while stronger quarterly results from Tata Consultancy Services (TCS) improved sentiment toward the technology sector despite new US restrictions affecting major outsourcing companies.

According to NDTV, the Sensex closed 879 points higher, while the Nifty 50 gained 288 points. The market capitalization of BSE-listed companies increased by Rs 3.64 lakh crore to Rs 465.97 lakh crore, compared with Rs 462.33 lakh crore at Thursday's close.

The recovery followed a steep decline on Thursday, when the Sensex dropped 1,045.46 points, or 1.44%, to 71,593.24, and the Nifty 50 fell 371.25 points, or 1.64%, to 22,231.80, according to NDTV Profit.

Technology shares attracted renewed buying after TCS reported its second-quarter results for fiscal 2027. The company's consolidated net profit rose 4% sequentially to Rs 13,884 crore, while revenue increased 1.3% to Rs 73,188 crore, according to NDTV Profit.

TCS reported earnings before interest and taxes of Rs 17,553 crore, up 1.4% quarter over quarter, while its operating margin remained at 24%. Revenue grew 0.5% sequentially in constant currency terms, and the company announced a dividend of Rs 12 per share.

The results provided support for IT shares after concerns about the sector's growth prospects and access to skilled workers in the United States. Finimize reported that TCS had recorded its weakest September-quarter revenue growth in three years, adding to questions about the outlook for Indian technology exporters.

The US government also suspended several major technology and outsourcing companies from the Permanent Labor Certification Program, which is used in the employment-based green card process for foreign workers. Companies named in reports included Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, alongside Microsoft and Adobe.

The US Labor Department attributed the suspensions to multiple active federal investigations, according to TradingView. NDTV Profit reported that the government accused the affected companies of abusing the H-1B visa program.

Sumit Singhania, Head of Research at Bajaj Broking, said the development created additional uncertainty for Indian IT companies. He identified potentially higher hiring and compliance expenses as affected firms might need to rely more heavily on US-based employees and subcontractors.

Singhania also warned that the additional costs could pressure operating margins in the near term and increase share-price volatility while investors assess the scope and duration of the regulatory action.

Broader economic pressures continued to threaten the recovery. TradingView reported that Brent crude fell 1.13% to $103.10 per barrel during Friday's session, following elevated prices that had raised concerns about inflation in India, a major oil importer.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said high crude prices and elevated US bond yields had shifted the market toward a sell-on-rallies approach. He also cited sustained foreign institutional investor selling, including disposals of fundamentally strong large-cap shares.

According to Vijayakumar, foreign institutional investors had sold equities worth Rs 36,210 crore through exchanges during October up to the report's publication. He expected continued selling pressure if oil prices remained high and US bond yields stayed elevated, despite attractive valuations in some large-cap stocks.

International markets offered mixed signals. TradingView reported that Japan's Nikkei fell 0.58% to 68,640, while Singapore's Straits Times gained 0.16% to 5,385 and Hong Kong's Hang Seng rose 0.96% to 24,015. South Korean and Taiwanese markets were closed for a holiday.

In the United States, technology stocks faced heavy selling on Thursday amid renewed concerns about artificial intelligence valuations and revenue growth. According to NDTV Profit, the Nasdaq Composite dropped 1.25% to 27,193.34, while the S&P 500 declined 0.47% to 7,765.36. The Dow Jones Industrial Average edged up 0.10% to 51,231.64.

NDTV Profit reported that OpenAI's annualized revenue at the end of September was approximately $50 billion, below a previously reported figure of $68 billion. Shares of Nvidia, AMD, Broadcom, Microsoft, Intel, Micron Technology and Oracle also declined during Thursday's US session.