Nifty IT surges 3% on US PERM move; Sensex opens 183 points higher
Synopsis
Nifty IT jumped over 3% at the open after the US government's PERM announcement — but the rally is happening against a backdrop of ₹36,210 crore in FII outflows this month, elevated crude prices, and technicals pointing to a fragile structure. Whether this is a genuine turnaround or a relief bounce in a sell-on-rally market is the question traders are asking.
Key Takeaways
Sensex opened at 71,776.67 , up 183.43 points (0.26%) , on 9 October 2026 .
Nifty50 began at 22,314.95 , gaining 83.15 points (0.37%) .
Nifty IT surged more than 3% to 28,604.75 following a US government PERM announcement.
FIIs net sold ₹12,943 crore on Thursday; cumulative October outflow stands at ₹36,210 crore .
DIIs provided support with net purchases of ₹10,703 crore on Thursday.
Analysts flagged 22,050 as a key downside level; resistance seen in the 22,290–22,350 band.
Domestic equity benchmarks opened in the green on Friday, 9 October 2026, with the Nifty IT index leading sectoral gains after the US government made an announcement on the Permanent Labor Certification Program (PERM), sparking a sharp rally in technology shares. The development lifted sentiment across the broader market even as global headwinds persisted.
Opening Bell: Where the Indices Stood
The BSE Sensex opened at 71,776.67, up 183.43 points or 0.26% from the previous close. The NSE Nifty50 began the session at 22,314.95, gaining 83.15 points or 0.37%. Both benchmarks reflected cautious but positive buying interest at the open.
IT Leads the Charge; Broader Sectors Follow
Nifty IT surged more than 3%, touching 28,604.75 — an intraday high in morning trade — on the back of the US PERM announcement, which market participants read as a potentially favourable signal for Indian IT companies that rely on the programme for skilled-worker placements. Nifty MidSmall IT & Telecom also rose more than 2% to 9,825.85.
Broader sectoral participation was evident, with Nifty FMCG, Nifty Media, Nifty Healthcare, Nifty Realty, and Nifty Private Bank each gaining up to 1% in early trade.
What Market Experts Are Saying
Analysts cautioned that the underlying macro environment remains challenging. Elevated crude oil prices and high US bond yields have, according to experts, shifted the near-term market structure to a 'sell on rally' mode. Sustained foreign institutional selling, they noted, has emboldened bears to short even fundamentally strong blue-chip stocks.
'Given the elevated crude prices and high US bond yields, FIIs are likely to continue selling in the near term, irrespective of favourable valuations, particularly of large-caps,' market experts said.
On the technical front, analysts flagged the 22,050 level as a key zone that was now within reach, with 19,000 and 16,700 coming back into focus below that. However, given that the index was near the lower Bollinger band, a short-term swing higher was seen as possible early in the session. Upside expectations were said to remain capped within the 22,290–22,350 band, with a sustained move above that range potentially opening the door to 22,440–22,600. Analysts placed the downside marker for the day near 22,140.
FII Selling and DII Support
Foreign institutional investors (FIIs) remained aggressive net sellers on Thursday, offloading equities worth ₹12,943 crore. Domestic institutional investors (DIIs) partially offset the outflow with net purchases of ₹10,703 crore. Cumulatively, FIIs have sold equities worth ₹36,210 crore through exchanges in October so far — a pace that analysts say continues to undermine near-term sentiment despite domestic support.
Global Cues and What to Watch
Global sentiment remained mixed. Weakness in US technology stocks and elevated crude oil prices amid Middle East tensions continued to weigh, while some easing in US bond yields offered limited relief. Despite the current corrective phase, market experts noted that history shows market downturns can present accumulation opportunities for patient long-term investors in high-quality stocks. Traders will closely track crude oil movements, US bond yield trajectory, and any further updates on the PERM programme in the sessions ahead.
Point of View
But the context matters: it is happening inside a market that experts describe as structurally in 'sell on rally' mode, with FIIs offloading over ₹36,000 crore in October alone. One US regulatory announcement is unlikely to reverse the structural pressure from high crude and elevated US yields. Indian IT's sensitivity to US labour policy is well-established, but PERM-linked moves have historically been short-lived unless accompanied by broader US tech spending revival. The DII cushion is also narrowing — if FII selling accelerates, domestic flows may not be enough to hold key technical levels.
NationPress
9 Oct 2026
Frequently Asked Questions
Why did Nifty IT surge more than 3% on 9 October 2026?
Nifty IT surged more than 3% to 28,604.75 following an announcement by the US government on the Permanent Labor Certification Program (PERM), which market participants interpreted as a positive signal for Indian IT firms dependent on the programme for skilled-worker hiring in the US.
Where did the Sensex and Nifty open on 9 October 2026?
The Sensex opened at 71,776.67, up 183.43 points or 0.26%, while the Nifty50 began at 22,314.95, up 83.15 points or 0.37%, on 9 October 2026.
How much have FIIs sold in Indian equities in October 2026?
Foreign institutional investors have net sold equities worth ₹36,210 crore through exchanges in October 2026 so far. On Thursday alone, FIIs offloaded ₹12,943 crore, while DIIs bought ₹10,703 crore to provide partial support.
What are the key technical levels to watch for Nifty?
Analysts have flagged 22,050 as a critical support level, with 19,000 and 16,700 in focus below that. On the upside, resistance is seen in the 22,290–22,350 band, with a breakout potentially targeting 22,440–22,600. The downside marker for the session is near 22,140.
What global factors are affecting Indian markets?
Elevated crude oil prices amid Middle East tensions, high US bond yields, and weakness in US technology stocks are the primary global headwinds. Some easing in US bond yields has offered limited relief, while the US PERM announcement provided a short-term boost to IT sentiment.
