Infosys and Wipro ADRs dropped in US trading after the Department of Labour suspended several IT majors from the Permanent Labour Certification programme. The suspension, linked to federal investigations, has raised investor concerns about immigration policies and hiring flexibility.
Infosys ADR closed at 10.27 dollars while Wipro ADR fell 2.4% to 1.63 dollars. The GIFT Nifty slipped 28.50 points or 0.13% at 20:54 IST. The suspension affects Infosys, Wipro, TCS, HCL Technologies, Cognizant, Capgemini, Microsoft and Adobe. Labour Secretary Keith Sonderling confirmed that active investigations prompted the move.
The PERM programme allows foreign workers to gain permanent residency through employer sponsorship. Its suspension could delay green card processing for employees and impact talent retention. Indian IT companies depend heavily on the US market for both revenue and workforce placement, making this development significant for the sector.
Investor nervousness was evident as ADRs declined, reflecting fears of tighter restrictions on talent mobility. Broader sentiment in the Indian IT sector weakened with concerns about longer term regulatory hurdles in the US. The move comes amid heightened scrutiny of outsourcing practices and immigration compliance, adding uncertainty to the outlook for Indian IT firms operating in America.