US EditionInfosys, TCS to Wipro: IT Stocks Tumble up to 6% After Trump's H-1B Visa Fee Increase. Should You Buy?
The fee increase to $100,000 for new H-1B visa applications will impact FY27 filings, potentially causing a 6% earnings hit for some firms while encouraging offshoring and local hiring strategies.
- On September 22, 2025, US President Donald Trump issued a directive to increase the H-1B visa application fee to $100,000, resulting in a significant drop in Indian IT company shares on the stock market.
- The fee increase from $1,500 to $100,000 aims to tighten skilled worker immigration, prompting Indian IT firms to reconsider on-site staffing and visa filing strategies amid sector volatility.
- Indian IT vendors have built localization and subcontracting models and are expected to offset impacts by increasing offshore delivery and local recruitment, with some companies reducing H-1B dependency over the past decade.
- Motilal Oswal Financial Services noted that if new H-1B visas are no longer granted, revenues from on-site work would drop alongside a reduction in related costs. This could lead to improved operating margins since offshore projects are generally more profitable, resulting in a potentially neutral impact on earnings per share in the medium term despite slower revenue growth.
- The immediate stock market reaction showed IT sector valuations sliding over 3%, highlighting short-term uncertainty, while companies plan to gradually reduce visa reliance and manage costs amid potential legal challenges to the order.
27 Articles
27 Articles
America's H-1B visa loss is India's tech industry gain
India is poised to turn a headline shock into a long-term prize. Washington’s abrupt move to slap a US$100,000 charge on new H-1B visa applications has rattled markets, hitting India’s flagship technology shares and trimming both the Nifty 50 and Sensex. To many investors, it looked like a gut punch to a sector that depends […] The post America’s H-1B visa loss is India’s tech industry gain appeared first on Asia Times.
Indian tech stocks slump after Trump imposes $100,000 application fee for H-1B visas
President Donald TrumpClive Brunskill/Getty ImagesIndian tech stocks fell Monday after the White House imposed a $100,000 H-1B visa application fee.The NIFTY IT index slid nearly 3% as stocks such as Mphasis fell almost 5%.Jefferies analysts called the visa fee a "curveball" for the Indian IT sector.Indian technology stocks slumped on Monday after the Trump administration announced a new $100,000 application fee for the H-1B visa program for ski…
Nifty IT index feels the heat as Trump's H-1B crackdown disrupts industry's playbook
Indian IT stocks tumbled on Monday after US President Donald Trump announced a $100,000 fee for new H-1B visa applications, raising concerns over the sector’s reliance on sending skilled workers to the US.
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