Skip to main content

Indian IT Giants Face Major Market Selloff Amid US Visa Fee Hike Impact


Indian IT Giants Face Major Market Selloff Amid Visa Fee Hike Concerns


The Indian IT sector faced a significant market setback on Monday morning as the announcement of a US visa fee hike sent shockwaves through investor sentiment. The Nifty IT index plummeted more than 3% in early trading, resulting in a staggering loss of nearly ₹63,000 crore in market capitalization among the top 10 IT firms. Leading the charge downward was Tech Mahindra, which dropped 6%, followed by TCS with a fall exceeding 2%, Infosys down 2%, and Wipro declining close to 3%.


This timing presents a critical challenge for the Indian IT industry, given its heavy reliance on the US market. Approximately 55% of the sector's revenue stems from the United States, with mid-cap firms even more exposed—between 75 to 80%. The visa fee hike directly impacts the cost structures of these companies, particularly concerning the H-1B visa, a crucial work permit for Indian IT professionals employed in the US.


For Tata Consultancy Services (TCS), the largest IT firm in the sector, the implications are especially concerning. In the fiscal year 2023, around 7,000 H-1B visa approvals were granted for TCS employees. The increased visa fee could lead to a reduction in the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by an estimated 7-8% upon renewal of these visas. This could force firms to reassess their IT outsourcing models, possibly influencing hiring strategies and cost planning.


The ripple effects of the visa fee hike bring to light the vulnerabilities of Indian IT companies to policy changes in global markets, especially the US. Investors seem to be recalibrating their expectations for near-term profitability amid rising operational expenses. This market selloff signals caution and highlights the need for strategic resilience within the industry in navigating such external shocks.


This development marks a critical juncture for India's IT giants as they balance growth ambitions with evolving international regulatory environments. The coming months will be telling in how these firms adapt their business models to mitigate the impact of such regulatory cost increases while sustaining their global market presence.


Citations:


Times of India - Trump's H-1B visa fee hikes hits IT stocks: TCS, Wipro & Infosys shares tumble
Hindustan Times - How TCS, Infosys-led IT stocks are likely to react to H-1B visa changes
Economic Times - $100000 H-1B visa fee shock: How it could hit Indian IT giants
Times of India - US H-1B visa fee hike: Indian IT firms facing $150-550 million in immigration bill

Labels:

Comments

Post a Comment

Popular posts from this blog

Living in a World Full of Demotivators

  Some days it feels like life is just one long test of patience. Everywhere I turn, there’s someone ready to remind me of what I can’t do. They don’t always shout it out loud — sometimes it’s in their silence, their smirk, the way they walk away when I talk about my dreams. I try to carry hope like a candle, but around demotivators, the wind is constant. One small comment, one careless laugh, and the flame trembles. It hurts more when it comes from people I trusted to believe in me. Family, friends, the ones who should lift me up — instead, they make me doubt myself. Living in this kind of world feels heavy. You start questioning everything: Am I really capable? Am I foolish for trying? Should I just stop here? That’s what demotivators do — they plant doubt like seeds, and if I’m not careful, those seeds grow faster than courage. But even in this noise, I’ve realized something. Their words don’t come from knowing me better. Most times, they speak from their own fears, their own li...
Post a Comment
Read more

Life Surrounded by Demotivators: Learning to Breathe in Heavy Air

  Life isn’t always filled with cheerleaders clapping for us. More often, it feels like a crowd of demotivators stand in the front row, arms folded, waiting to remind us why we can’t, why we shouldn’t, why we’ll fail. Some are loud voices from outside — people who question, criticize, or belittle. Others are quieter but heavier: our own doubts echoing inside. Being surrounded by demotivators is like carrying invisible weights. You wake up with good intentions, maybe even a spark of energy, and then comes the remark — “That won’t work,” or “Others are better than you.” Suddenly, that spark dims. It’s not always about dramatic insults either. Sometimes it’s the constant small dismissals, the rolling of eyes, the silence when you expected support. These moments pile up, and before you know it, they’ve convinced you to stop trying. The hardest part is that demotivators can be people we care about. A friend who never celebrates our wins. A relative who constantly compares. A workplace t...
Post a Comment
Read more

When Yelling Breaks the Home: A Mother and Child’s Silent Pain

  When a Child Watches His Mother Break The walls of a home are meant to hold love, laughter, and safety. But for some, those walls echo with raised voices, cutting words, and humiliation that leaves scars you can’t see. Living with a narcissistic husband often feels like standing in the middle of a storm—never knowing when the next thunderclap will shatter the air. For a wife, it is an endless battle between dignity and despair. For a child, it is pure confusion and silent suffering. When a husband yells, his words don’t just pierce the woman he targets—they ripple through the small ears listening from the corner of the room. A six-year-old child does not yet have the language to name “emotional abuse” or “narcissism.” What he knows is fear. What he feels is helplessness. What he learns, tragically, is that love can sound like anger and that family can feel unsafe. Humiliation is not only a wound to the wife’s spirit but also a shadow that falls across her child’s innocence. Every...
Post a Comment
Read more