All eyes are on the IT stocks expected to take a tumble on Monday (September 22) in reaction the US raising H-1B visa fee. This would come after a good week of gains for Nifty IT index with stocks gaining between 1% to 3%.<\/p>\n
A sharp sell-off is expected in the IT sector as soon as the Indian stock market opens on Monday.<\/p>\n
The Trump Administration has announced a historic shakeup to the H-1B visa programme, raising the fee to $100,000 as well as the prevailing wage requirements.
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\nThe move directly impacts Indian IT companies as the US is a key market, contributing anywhere from one-third to two-thirds of the sector’s total revenue.<\/a><\/p>\n The US-listed shares or American Depository Receipts (ADRs) of\u00a0Infosys Ltd<\/a>. and\u00a0Wipro Ltd<\/a><\/p>\n . fell as much as 4% overnight after the changes were announced.<\/p>\n Analysts say Indian IT and tech companies dependent on H-1B visas may face a talent pool crisis. American tech companies such as Apple, Meta, Amazon, Google, NVIDIA, and Tesla are also likely to face similar problem. <\/p>\n Several American companies such as tech giant Microsoft and financial major JP Morgan have already issued advisory urging employees on H-1B and H-4 visas to return before the new visa fee rules take effect on September 21.<\/p>\n According to an internal email cited by Reuters, Microsoft advised: “We strongly recommend H-1B and H-4 visa holders return to the US tomorrow before the deadline.”<\/p>\n