By Reuters
Copyright brecorder
India’s equity benchmarks may open little changed on Monday, following last session’s profit-booking, with attention on information technology stocks after the U.S. introduced a new $100,000 fee for new H-1B visa applications.
Gift Nifty futures were trading at 25,334.5 points as of 08:03 a.m. IST, indicating that the benchmark Nifty 50 will open near Friday’s close of 25,327.05.
U.S. President Donald Trump announced on Friday that
companies would now be required to pay higher fees for H-1B worker visas. Last year, 71% of the approved H-1B beneficiaries were Indians.
Indian stocks rise for 3rd week
India’s $283 billion IT sector, which generates about 57% of its total revenue from the U.S., has long gained from American work visa programmes and outsourcing of software and business services.
America-listed shares of Indian IT majors Infosys and Wipro fell 3.4% and 2.1%, respectively, on Friday post the announcement.
According to Jefferies, IT firms are likely to move away from H-1B visas, as the new $100,000 fees threaten to wipe out five to six years of an employee’s operating profit.
Meanwhile, India’s major consumption tax cuts, aimed at spurring domestic demand ahead of the festive season, will take effect today. The reforms were announced earlier this month.
