By Anubhav Maurya

Copyright republicworld

IT Stocks Today: IT stocks dragged the markets lower today as fresh concerns emerged over the impact of the US decision to sharply hike H-1B visa fees.The Nifty IT index tumbled 2.84% trading at 35,541.25, while the BSE Focused IT index fell 1,213.68 points, also down 2.84%, to 41,550.52.Among the major losers, Persistent Systems slipped 4.78%, Mphasis declined 4.20%, Coforge dropped 4.08%, LTIMindtree shed 4.07%, and Tech Mahindra fell 3.49%. Heavyweights Infosys and TCS were also down 2.57% and 2.75% respectively. Wipro lost 2.16%, while HCLTech fell 1.49%.The sharp correction came after a report by Emkay Global warned that India’s IT services export growth could slow to below 4% in FY26 due to fresh risks from higher H-1B visa costs. The report had earlier projected a 5% growth in FY26 and a 7% CAGR over the next five years. But with visa costs now spiking, those estimates are under pressure.The US has raised H-1B visa fees for new applicants to a staggering USD 100,000, compared to the earlier range of USD 1,500–4,000. The move does not affect existing visa holders or renewals but could weigh heavily on Indian IT companies that rely on new on-site staff for large overseas projects.Emkay noted that India’s IT and software exports stood at USD 181 billion gross and USD 160 billion net in FY25, with Global Capability Centres (GCCs) already contributing more than USD 65 billion. While near-term revenues and margins may not face an immediate hit, sustained higher visa costs could force IT firms to rethink their traditional business models.Madhavi Arora, Chief Economist at Emkay Global, said, “Near-term impact may be limited on IT revenue/margins. However, if sustained, it could disturb Indian IT exports, companies’ traditional models, pressurise project margins, disrupt supply chains and on-site projects.” She added that a gradual shift towards offshore delivery could partly offset the risks.Echoing similar concerns, Nilesh Shah, MD of Kotak Mahindra AMC, said, “US restrictions on H-1B visas will hurt Indians more than Indian IT services companies. We have to create an ecosystem in India so that our talent doesn’t have to go abroad.”He also warned that such sudden policy changes could backfire on the US economy itself.With IT exports playing a vital role in India’s economy, investors are worried about how higher visa fees and other potential US regulations, like the proposed HIRE Act, may affect the sector. (With Inputs From ANI)