IT stocks set to take a hit as markets open for the week

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%.

A sharp sell-off is expected in the IT sector as soon as the Indian stock market opens on Monday.

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.

The 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.

The US-listed shares or American Depository Receipts (ADRs) of Infosys Ltd. and Wipro Ltd. fell as much as 4% overnight after the changes were announced.

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.

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.

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."

Also Read: Microsoft, JP Morgan urge H-1B workers abroad to return to US before Trump's visa fee hike deadline