"Mphasis stock fell despite the company saying in a stock exchange filing that it didn't expect the visa charge to impact its financials or operations. The firm, which has offices in several US states, said it has only made around 130 new applications for H-1B visas this year. It added that it has reduced its reliance on the program through local hiring, acquisitions, and partnerships, and said that it plans to address any challenges on this front with AI tools."
"Indian nationals account for more than 70% of all H-1B visa holders, most of whom work in computing and engineering. India's tech-heavy NIFTY IT index fell nearly 3% on Monday, led by shares of Mphasis, a tech services and consultancy firm, which closed 4.7% lower. Other index constituents - LTIMindtree, Coforge, and Persistent Systems - also fell by more than 4%."
The Trump administration announced a $100,000 fee for H-1B visa applications. Indian nationals make up over 70% of H-1B holders. The NIFTY IT index slid nearly 3%, with Mphasis down about 4.7% and several peers falling over 4%. Mphasis said it did not expect the fee to affect finances and reported about 130 new applications this year, saying it reduced reliance through local hiring and acquisitions. Jefferies called the fee a "curveball", saying it will constrain US talent supply, raise demand for local and green-card staff, and push up wages. Initial rollout comments caused confusion before the White House clarified the charge is a one-off for new applicants.
Read at Business Insider
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