Shares of leading Indian IT companies, including Infosys, Tata Consultancy Services (TCS), and Wipro, experienced a notable decline in early trading today. This downturn occurred despite a generally rising equity market, with the BSE IT index and Nifty IT index both registering falls.
The primary catalyst for the slump was the announcement by US President Donald Trump, extending a $100,000 fee imposed on employers sponsoring foreign workers under the H-1B visa program for another year. This levy, initially introduced in 2025, was slated to expire this month. Additionally, President Trump issued an executive order directing federal agencies to increase scrutiny on H-1B visa applications filed by companies that are simultaneously laying off or planning job cuts for US workers.
Impact on Major IT Players
Infosys stock slipped 1.73% to Rs 1031.95, contributing to a 37% decline year-to-date. TCS shares fell 1.25% to Rs 2075.50, marking a 35% drop this year. Wipro also saw its stock fall 1.59% to Rs 163.35, hitting a fresh 52-week low. Tech Mahindra shares dipped 0.39% to Rs 1524.60.
These measures are expected to significantly increase compliance requirements, costs, and complexity for large technology and IT services firms heavily reliant on the H-1B program to recruit specialized foreign talent. Indian professionals historically constitute the largest share of beneficiaries under this US visa category.
Industry Response and Shifting Dynamics
In response to earlier proposals, tech industry body Nasscom had urged the US to reassess the role of the H-1B visa program in addressing skill shortages. Nasscom highlighted that the number of H-1B visa workers employed by Indian IT companies has decreased significantly over the past five years. This shift reflects a strategic move by technology firms to expand their local workforce and delivery capabilities within the US, reducing their dependence on overseas workers while still acknowledging the H-1B program's importance for accessing highly specialized talent.
While the broader Sensex and Nifty indices posted gains, the IT sector's performance today underscores the direct and immediate impact of evolving US immigration policies on major Indian technology service providers.