IT Sector Hit Hard by US Visa Fee Hikes
IT stocks saw a decline for the second consecutive day as US H-1B visa fee hikes raised concerns. Companies like Hexaware, Mphasis, and Tech Mahindra reported significant losses. The new visa fee of $100,000 affects Indian tech professionals heavily, who constitute a major portion of H-1B visas.
- Country:
- India
For the second day in a row, IT stocks experienced a decline amid worries over the recent sharp increase in US H-1B visa fees. Hexaware Technologies saw a substantial drop of 5.04%, while other prominent companies like Mphasis and Tech Mahindra also posted losses.
The BSE IT index fell by 0.63% to 34,769.38, reflecting the broader sector's concerns. Ajit Mishra, SVP - Research at Religare Broking Ltd, highlighted IT, FMCG, and realty sectors as those most affected, with the IT sector particularly troubled by the implications of the visa fee hike on earnings.
Last week's announcement by the Trump administration of a one-time $100,000 fee on H-1B visas compounds existing pressures. Indian tech professionals, who comprise over 70% of H-1B visa holders, stand to be significantly impacted.
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