Donald Trump is signing a proclamation that would move to extensively overhaul the H-1B Visa Program, requires a $ 100,000 Fee for Applications. , Photo Credit: Aaron Schwartz
Information Technology Stocks were the Worst Performs on Monday, with the nifty it index plunging 3 per cent and over $ 10 billion erosion in market capitalization, as over the weeke Us Imposed a STIFF $ 100,000 fee on New H-1B Application, Potentially Raising Costs for Indian It Companies Sending Workers Abroad.
It stocks, with the second heaviest weightage in the Benchmark Nifty50Saw losses in the range 1.7 to 3 per cent. In the niftyit index, losses was in the range of 1.7 to 4.7 per cent, with the mid-size companies such as perSistent systems, coforge, ltimindtree and mphasis Falling in the range 4.3 to 4.7 per 4.7 to 4.7 per 4.3 to 4.7 per 4.3 to 4.3 to 4.3 to 4.3 to.
The niftyit index has fallen over 1000 points over the past one-wheek period. The sector has been an underperformer larGly due to slower dealmaking in the US and pricing pressure.
Despite the Reduction Dependency of It Companies on H-1B Visas Over the Years, The US Still Accounts for A Significant Chunk of Revenues of Just Under 60 Per CENT For The Companies and Analysts Expects To have a Near-Term overhang on stock prisles, as investors will be pricing in Protectionist Risks, said ICICI DIRECT In A Note.
Around 71 per cent of beneficiaries of us h-1B visas are Indians.
H1-B impact on Indian it firms
“The new h-1-1b visa fee will raise operating costs for Indian it services companies. Patodia, AVP, Moody’s Rating, In A Note.
The ratings agency added that the steady global demand for it services would help offset some of these rising costs.
“Large it firms like Tata consultancy services (Baa1 Stable) and Infosys Limited (Baa1 Stable) Are Better Equipped to Manage These Pressures into their Higher Profitability, Strong Balance Sheets and Increased Focus on Local Hiring Over the Last Few Years, ”
The new Visa costs are expected to affect the top 12 it companies in the range of 14 to 188 Basis points, while their earrnings will take a hit in the range of 1.5 to 12 per cent, the broker said.
Increded Equites, which had downgraded the it sector’s rating to neutral from overweight in February, Said that the current regulations added a “new vector” to the maycerting macroeconomic infection.
It pointed out that rising cost pressure, lower onsite roles Incrementally and Potential offshoring of existing onsite roles round be key headwinds for fy27 reviews and ebit margin.
Published on September 22, 2025