H-1B fees weigh on Indian IT stocks

Indian IT stocks suffered a setback of almost 3% on Monday after U.S. President Donald Trump introduced new H-1B visa fees amounting to $100,000. This measure threatens the long-established model of sending skilled workers to the U.S. The IT index was the biggest loser among sectors, dragging the benchmark Nifty 50 index down by 0.2%. All ten stocks in the index recorded losses, with Tech Mahindra leading the decline with a drop of 4.2%. Heavyweights such as TCS, Wipro, and Infosys also faced losses of 2.4%, 2.2%, and 2.5%, respectively. Additionally, U.S.-listed shares of Infosys and Wipro fell by 3.4% and 2.1% on Friday. India's IT industry, with a volume of $283 billion, generates about 57% of its revenue in the U.S. and has benefited significantly from American work visa programs in the past. Analysts from TD Cowen noted that the current developments introduce new uncertainties for the industry, which is already burdened by geopolitical and macroeconomic risks. The announcement of increased H-1B fees led to confusion among visa holders, who feared they would no longer be able to enter the U.S. under the new regulations. Since the beginning of the year, IT stocks have fallen by 15.6%, while the Nifty 50 has risen by 7.1%.