Indian IT stocks surge despite US immigration concerns

Indian IT stocks rallied sharply on Friday, defying expectations amid heightened concerns over US immigration regulations affecting the technology sector. Tata Consultancy Services spearheaded the surge with a robust 4.2% jump in share price.

Analysts expressed surprise at the strength of the rally given ongoing regulatory headwinds facing Indian IT firms in the US market. The sector has faced persistent uncertainty around visa restrictions and employment policies that could impact offshore staffing models.

Sentiment shifted after OpenAI released updated revenue projections that eased concerns about potential disruptions from artificial intelligence on traditional IT services. The development suggested that AI adoption may not pose as severe a threat to IT service providers as previously feared, boosting investor confidence in the sector.