"Trump's overhaul of the program, by mandating a $100,000 fee for new applications, may disrupt projects of Indian outsources like Tata Consultancy Services Ltd. and Infosys Ltd. that derive a large chunk of revenue from the US. TCS shares fell as much as 3.4%, the most in more than two months, while Infosys slipped as much as 3.9%. Tech Mahindra Ltd. declined 6.5%."
"Most stocks pared their declines later as analyst say the fact that fee hikes only apply to new visa applications means the impact on the sector would be limited. The most likely scenario is large IT companies will increase offshoring, leaving no financial impact on them, according to a JM Financial note. Importantly, with one of the biggest regulatory overhangs now behind, this event is net positive, in our view, it said."
"India's IT services sector has already taken a hit from disappointing earnings for the April-June quarter and layoff plans by bellwether TCS, as customers curtailed technology spending amid flaring trade tensions."
US President Donald Trump's mandate of a $100,000 fee for new H-1B visa applications triggered declines in major Indian technology stocks, including Tata Consultancy Services, Infosys and Tech Mahindra. Market prices briefly fell before many pared losses as analysts noted fee hikes apply only to new visas, limiting sector-wide impact. Large IT firms are expected to boost offshoring to avoid financial harm, while smaller companies face greater vulnerability due to higher visa dependency. The sector already suffered from weak April-June earnings and TCS layoff plans, and firms may redesign pricing toward onshore consulting or cheaper offshore models.
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