American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Indian IT stocks crash as Trump’s $100K H-1B visa fee sparks market turmoil

by admin September 22, 2025
September 22, 2025
Indian IT stocks crash as Trump’s $100K H-1B visa fee sparks market turmoil

Indian IT stocks slumped on Monday after US President Donald Trump announced an overhaul of the H-1B visa programme, imposing a hefty $100,000 fee on new applications.

The surprise move threatens to upend the long-standing outsourcing model that Indian IT majors rely on to serve their biggest market.

Shares of Tata Consultancy Services, Infosys, and Tech Mahindra led sharp declines, as investors worried about rising operational costs and shrinking margins.

The selloff underscored how vulnerable India’s export-driven IT sector remains to regulatory shocks from Washington, even as firms have tried to reduce their reliance on the controversial visa route over recent years.

US H-1B visa fee shock rattles IT stocks

Donald Trump’s plan quickly reverberated across Dalal Street, prompting a broad selloff in Indian IT stocks.

Tata Consultancy Services fell as much as 3.4% intraday, its steepest slide in more than two months, before trimming losses.

Infosys shares tumbled 3.9%, while Tech Mahindra suffered the biggest blow with a 6.5% drop.

Mid-tier firms fared no better, with LTIMindtree and Mphasis both shedding about 6% each.

The beating came against the backdrop of already fragile sentiment: a sectoral index tracking IT companies is down more than 15% this year through September 19, making it the worst performer on the National Stock Exchange, in contrast to the Nifty 50’s 7% rise.

For investors, the connection to Trump’s visa fee was clear. Indian IT firms have historically sent thousands of engineers on H-1B visas to work with US clients directly, a cost-efficient model that kept margins robust.

A $100,000 fee per visa application would smash that calculus, forcing firms either to pay up for onshore roles or to overhaul delivery to offshore centres, neither of which looks margin-friendly in the near term.

The developments added to a string of pressures for the industry, which has already been grappling with weaker earnings, reduced client spending, and layoffs at top firms.

Analysts see midcaps more exposed, risks lingering

Bloomberg News quoted several market analysts who remain split on how deep and lasting the damage could be.

According to Citi strategists, the true financial impact will surface over the next couple of years, with fiscal 2027 set to feel the brunt.

Companies such as HCL Technologies and Infosys, which have already built more visa-independent workforces in the US, could weather the storm better than smaller peers. But even for large caps, higher onsite costs are difficult to avoid.

JPMorgan analyst noted that companies may increasingly turn to near-shoring in Canada or Mexico, or opt to substitute H-1B workers with local US staff.

Brokerage Investec cautioned that midcaps face the sharpest pain, given their higher reliance on visas.

Litigation is one potential reprieve: immigration advisors suggested the new fee could face court challenges, which might offer temporary relief.

Still, Emkay economist framed the move in broader terms, saying India’s services exports had been pulled squarely into the trade war crossfire.

For now, IT valuations will carry a higher risk premium, and investors appear braced for more volatility ahead.

The post Indian IT stocks crash as Trump’s $100K H-1B visa fee sparks market turmoil appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
US H-1B visa fee applies only to new applicants, eases pressure on Indian IT
next post
Will Rolls-Royce share price hit 1,250p as Goldman Sachs predicts?

Related Posts

Delta (DAL), AMD, Walgreens (WBA), or Constellation Energy...

January 11, 2025

Summer demand could support OPEC+ output increases, say...

May 29, 2025

European stocks open lower: FTSE down 0.2%, CAC...

May 21, 2025

Klarna IPO is coming: will its stock be...

August 31, 2025

Trump’s $175M bond backer is a subprime car...

April 5, 2024

Broadcom stock nears key price; could hit $1...

October 9, 2024

Shiba Inu burn rate volatility raises questions about...

October 24, 2024

European markets slip as central bank meetings dominate;...

December 17, 2024

Shawbrook plans £2B London IPO, offering boost to...

October 6, 2025

Greggs stock soars on profit guidance, but analysts...

October 1, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

      October 5, 2025
    • Evening digest: Trump sets deadline for Hamas, Canada’s slowdown, BTC rebounds

      October 5, 2025
    • Iran executes six people for alleged links to Israel, state media reports

      October 5, 2025
    • US digest: Trump’s Hamas ultimatum, government shutdown stalemate continues

      October 5, 2025
    • Japanese stocks may extend record run as Takaichi win revives ‘Abenomics’

      October 5, 2025

    Categories

    • Business (4,191)
    • Investing (2,958)
    • Latest News (2,080)
    • Politics (1,536)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved