: IT Stocks Plunged over 4% on Tuesday, Knocking Off more than Rs 33,000 Crores in Market Valuation of Top 5 Firms, after a New H1-B Bill in the US, S
et Off Concerns that it will Adversely Impact Hiring Plans of Indian Technology Firms.
TCS Slumped by as Much as 4.47%, to Settle at Rs 2,229.90 on BSE. Intra-Day, the Stock had Hit a Low of Rs 2,206.55.
Infosys lost 2.01% to Close at Rs 905. During the Day, it had Fallen to a Low of Rs 905.
Wipro came in at Rs 457.10, 1.62% Lower than its Previous Close. It Tumbled to Rs 445.55 at 1 Point.
Tech Mahindra went down as much as 4.23% to Close at Rs 451.75 &HCL Technologies Declined 3.67% to Rs 808.85.Taken together, these 5 saw an Erosion of over Rs 33,000 Crores in their Market Capitalization.
The BSE IT index, a Benchmark of IT Stocks, Fell 2.96% to Settle at 9,586.34.
In addition, Mastek Dropped 3.68%, Mindtree 3.27% & Mphasis 3.34%.
According to Experts, US President Donald Trump, Plans to Overhaul Work-Visa Programs that Dampened Investor Mood.
A Legislation has been Introduced in the US House of Representatives which among other things Calls for more than Doubling the Minimum Salary of H1-B Visa Holders to USD 1,30,000, making it Difficult for Firms to use the Program to Replace American Employees with Foreign Workers, including from India.
“Hike in H1-B Visa Cost will have Significant Impact on the Financials… as Indian Companies are Major Users of H1-B Visa though they form very less part of the Overall Workforce (around 11-15%),” Angel Broking said in a report.
“Depending on the Companies, they could easily Witness around 60-70% Rise in the Salaries of the H1-B Visa Dependent Workforce & Hence have Significant Impact on the Net Profit of the Companies,” it added.
H1-B is a Non-Immigrant Visa that Allows US Companies to Employ Foreign Workers in Special Occupations that require Theoretical or Technical Expertise in Specialized Fields. The Technology Companies go for it to Hire Tens of Thousands of Employees each Year.