 "<div>Nifty IT index feels the heat as Trump's H-1B crackdown disrupts industry's playbook</div>")
Indian IT stocks tumbled on Monday after US President Donald Trump announced a $100,000 fee for new H-1B visa applications, raising concerns over the sector’s reliance on sending skilled workers to the US.
Indian information technology stocks fell sharply on Monday, with benchmark index Nifty IT down over 2.5 per cent around 10 am, after US President Donald Trump announced a $100,000 fee for new H-1B visa applications. The move raised concerns over the sector’s long-standing model of sending skilled workers to the US.
Tech Mahindra, TCS, Infosys, Wipro and other major IT firms dropped up to 6 per cent in early trade. Tech Mahindra led the losses, opening at Rs 1,499, down 6 per cent from Friday’s close of Rs 1,533. All 10 stocks in the Nifty IT index declined, with Persistent Systems, LTI Mindtree and Mphasis among the biggest fallers.
Panic and clarification
The initial announcement triggered panic across the industry, as families of H-1B visa holders scrambled to reach the US before the fee took effect. A day later, the Trump administration clarified that the $100,000 charge is a “one-time” fee for new applicants only, not an annual levy, and will not affect renewals or existing visa holders. The clarification provided temporary relief for both H-1B and H-4 visa holders.
Analysts said the drop reflects a knee-jerk reaction, noting that the industry’s reliance on H-1B visas has declined in recent years.
According to Motilal Oswal, around 20 per cent of employees at the top five IT services firms are currently on-site in the US.
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