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On Friday, Trump announced that companies would now be required to pay higher fees for new H-1B worker visas. Last year, 71% of the approved H-1B beneficiaries were Indians.
India’s $283 billion IT sector, which generates about 57% of its total revenue from the U.S., has long benefitted from American work visa programmes and the outsourcing of software and business services.
U.S.-listed shares of Infosys and Wipro fell 3.4% and 2.1%, respectively, on Friday.
“This among the last things that the sector sentiment needed, amid persistent pressure weighing on growth from geopolitical and macro uncertainties and structural concerns caused by GenAI,” analysts at TD Cowen said.
The initial confusion caused by the move resulted in several H-1B visa holders rushing back to the U.S., fearing they would not be allowed back once the new rule took effect.
IT stocks are the worst sectoral performers so far in 2025, falling 15.6%, while the Nifty 50 has gained 7.1% so far this year.
Reporting by Kashish Tandon in Bengaluru; Editing by Janane Venkatraman