Desk note · industry · IT services / US immigration
The US Labour Department suspended Cognizant, Infosys, TCS, Wipro, HCL, and Capgemini from the Permanent Labour Certification (PERM) programme on 8 October 2026. Microsoft and Adobe were suspended too. New and pending PERM filings for those employers will not move while the ban lasts.
On 8 October 2026, US Labour Secretary Keith Sonderling said the department is suspending several large technology employers from the Permanent Labour Certification programme. Indian IT services firms on the list include Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL, and Capgemini. Microsoft and Adobe were suspended as well, with officials citing active federal investigations. The department said it will not accept new PERM applications and will not process pending ones involving those companies.
PERM is the step many US employers use before they can sponsor an H-1B worker for a green card. A suspension does not cancel existing visas overnight. It stops the permanent residency pipeline for new filings at these employers while the ban is in force. For Indian IT services firms, US revenue depends on teams that rotate between India and client sites. Slower green card processing can make US postings less attractive and push hiring toward offshore delivery centres.
The announcement landed a day after the Department of Homeland Security proposed large new fees for Optional Practical Training, another route foreign students use to work in the US after graduation. Taken together, the moves tighten legal paths from student visa to long-term US employment.
If you work in IT services or plan to, client work in the US may still happen on short-term visas even when PERM is paused. Career planning for US residency through a suspended employer needs a reset. If you invest in IT stocks, this is a policy shock to how those firms staff US projects, not a comment on one quarter’s revenue. Watch whether clients shift work offshore, whether rivals not on the list gain share, and whether Washington lifts suspensions after investigations close.
Trade policy / exports
Commerce minister Piyush Goyal said on 22 October 2026 that India’s proposed free-trade agreement with the European Union could become operational within four to five months after signing, with the deal expected to be inked before year-end during his visit to Germany.
Food delivery / quick commerce
Swiggy reported on 22 October 2026 that September-quarter revenue rose 36% to about ₹7,571 crore and the consolidated net loss narrowed to ₹922 crore, as food delivery posted record adjusted core profit of about ₹349 crore while quick-commerce Instamart lost about ₹764 crore at the segment level amid heavier discounting and 69 new dark stores.
Quick-service restaurants / consumers
KFC and Pizza Hut operator Sapphire Foods India said on 22 October 2026 that September-quarter consolidated restaurant sales rose 20% year on year to about ₹885 crore, with KFC India same-store sales up 14% and adjusted EBITDA margin expanding 100 basis points to 7.1% even as the listed stock remained far below its 52-week high.
RBI / government borrowing
On 22 October 2026, the Reserve Bank of India accepted no bids at the scheduled sale of short-dated government treasury bills, the first full cancellation in about seven months, as investors demanded higher yields amid a bond selloff, oil-linked inflation fears, and expectations of more rate hikes after October’s policy minutes.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.