Nifty IT index feels the heat as Trump's H-1B crackdown disrupts industry's playbook

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 rushed to 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.

More from World

‘Firm got 5,189 H-1Bs, fired 16,000 Americans’: White House factsheet defends Trump’s H-1B visa crackdown Weddings called off, Diwali trips cancelled: How H-1B visa fee hike caused panic among Indians

Analysts said the drop reflected 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.

India’s reliance on US visas

Last year, Indians accounted for 71 per cent of all approved H-1B visa holders. India’s $283 billion IT sector, which earns roughly 57 per cent of its revenue from the US, has long benefited from American work visas and outsourcing of software and business services.

On Friday, US-listed shares of Infosys and Wipro fell 3.4 per cent and 2.1 per cent, respectively.