IT Stocks Reel Under US H-1B Visa Fee Surge
IT stocks tumbled due to a steep hike in US H-1B visa fees. Infobeans Technologies saw the largest drop at nearly 9%. The combined market valuation of key IT companies decreased by approximately Rs 83,994 crore. The fee increase was imposed by US President Donald Trump and impacts India's IT outsourcing model significantly.
- Country:
- India
On Monday, IT stocks witnessed a sharp decline as Infobeans Technologies and Hexaware experienced significant tumbles of nearly 9% and 7%, respectively. The downturn was sparked by concerns over a substantial hike in US H-1B visa fees, which profoundly affects the Indian IT outsourcing industry.
The shares of key players like Tata Consultancy Services, Infosys, and Wipro also fell, leading to a combined market valuation loss of Rs 83,994.45 crore within a single trading day. The BSE IT index decreased by 2.73%, closing at 34,988.20.
US President Donald Trump's recent decision to increase the H-1B visa application fees to USD 100,000 stirred apprehension in the market, as over 70% of these visas are secured by Indian tech professionals. The move could disrupt a sector that has only recently begun to recover.
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