Indian It Stocks Experienced A Significant Downturn on Monday Folling The Trump Administration’s Announcement of a $ 100,000 application Fee for New H1B Visa Applicants. The nifty it index continued to trade in the negative range after Dropping Nearly 3 per cent on Monday, with Major Companies like Tech Tech Mahindra, Coforge and mphsis leading the losses.
Analysts indicate that companies might increasing depend on offshore delivery to reduce costs. While this ShiftCold Affect Operations and Financial Performance, Its Overall IMPACT is expected to be limited. They also noted that the companies have alredy been reviewing visa reliance in the last few years.
Kotak Institutional Equites Stressed that for a Sector Grappling with Challenges from AI-Driven Deflation, A Sloating Macro Environment and the Diversion of Spending Toward Infectionary Software and Hypercalers, Potential changes in visa regulations add another layer of concert. The elevated uncertainty can pressure multiples, it said.
According to HDFC Securities, The Revenue or EBIT IMPACT Over the Medium Term Will Be 5 or 7 per 7 per cent, with a margin impact of 50 bps.
Significant Impact – Infosys, TCS and Wipro
According to kotak, infosys has about 35 per cent reliance on H-1B visa in the US and tcs has 28 per cent. The brokerage expects about 19 per cent for HCL Tech, 30 per cent for wipro and about 28 per cent for tech mahindra.
Among the Mid-Tier Companies, Hexaware has about 40 per cent reliance, 20 per cent for person, 35 per cent for coforge and 30 per cent for mphasis.
H-1B Reliance on Other Mid-Tier Companies Like Lti Mindtree will also be more pronounced, noted HDFC Securities.
Meanwhile, Motilal Oswal Said, Big Tech Firms Like Google, Amazon, Microsoft and Meta Have a Larger Share of Fresh H-1B Applications Than Indian Its.
Strategic Shifts: Nearshoring and Local Hiring
Nuvama Institutional Equites’ Report Indicated that Companies Are Likely to Reduce H-1B Visa Impact by Nearshoring and Hiring Local Talent. This approach aims to mitigate the increase costs and ensure compliance with us labore regulations.
The brokerage also noted that over the past eight years, the Indian its has significantly reduced their dependence on H-1B visas.
While Some Near-Term Financial and Operational Pressures are unavoidable, Nuvama said, higher offshoring is expected to Cushion Much of the Burden Created by the Steep Visa Feep Visa fee in the long-up
Published on September 23, 2025