(Photo: iStock)
(Photo: iStock)

IT stocks fall as report says US exploring H-1B visa caps

  • Wipro was the worst performer losing over 4%
  • The BSE IT Index fell 0.7%

Mumbai: Shares of Indian information technology companies fell on early Thursday after a Reuters’ report said the US has told India that it was considering caps on H-1B work visas for countries that force foreign companies to store data locally. Indian software companies are among the largest recipients of the H-1B work visas.

Shares of Wipro Ltd fell 4%, while Tata Consultancy Services Ltd declined 2%, Infosys Ltd were down 1%, Tech Mahindra Ltd fell 1.5%, and HCL Technologies Ltd eased 0.5%. The BSE IT Index fell 0.7%.

The plan to restrict the popular H-1B visa programme, under which skilled foreign workers are brought to the US each year, comes days ahead of the U.S. Secretary of State Mike Pompeo's visit to New Delhi.

The warning also comes after India recently tariffs on import of 29 US products. India decided to impose the long pending retaliatory tariffs on US products after Washington last week withdrew duty-free benefits for Indian exporters.

On 1 June, President Donald Trump removed India from a list of countries that receive special trade privileges, claiming New Delhi hasn’t done enough to open its markets to US companies.

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