It stocks: Indian IT companies such as Infosys and Wipro saw a decline of up to 4 % in the US Depository Releas (ADRS), listed in the US stock market of Indian IT companies. The decline came after US President Donald Trump’s decision on H-1B visa. Trump has increased the H-1B visa fees from several times to 1 million dollars.
Following this decision, Infosys’ adrs declined by 4% on Friday, while Wipro’s Adrs closed down by 2%. Now investors will be eyeing the performance of IT companies in the Indian stock market on Monday.
According to the new rules, now companies will have to pay $ 100,000 every year as every new H-1B visa application or its supplement. The US State Ministry will have the right to reject the application if the payment is not made.
Analysts say that this is a big challenge for Indian IT companies but there is no crisis of existence on them. It is necessary to mention here that this decision will not have any immediate impact on the H-1B visa holders already working in the US. Experts believe that due to such a high cost, the H-1B visa program will be difficult to survive in the current form.
Impact on Indian companies
The largest part of the earnings of Indian IT companies comes from North America. Many companies earn from one-third to two-thirds from this geographical area. In such a situation, changes in H-1B rules can affect their business models.
Market eye on IT stocks
The Nifty IT index saw a rise of 1% to 3% in the last business week. Investors’ eyes will now remain on the move of the IT index when the market opens on Monday morning. To see how the reaction of shares of Infosys, TCS, Wipro and other big IT companies is.
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