Indian technology stocks suffered a sharp fall after Donald Trump revived the plan to impose a $100,000 fee on new H1B visa petitions. The move triggered panic among investors and erased ₹55,000 crore in market value in one trading session.
The Nifty IT index dropped nearly 3% as leading companies faced heavy selling. TCS fell 3%, Infosys slipped 2.5%, Wipro declined 2.2% and HCL Tech lost 2%. Traders worried that higher visa costs would reduce competitiveness in the United States market.
The fee applies only to fresh petitions, not renewals, but analysts believe it will still hurt Indian IT firms that rely on sending new talent onsite. Investor sentiment weakened further because American courts have given conflicting rulings on the legality of the fee, creating uncertainty about future policy direction.
Indian professionals account for 70% to 75% of H1B visas annually, making the sector highly vulnerable to such changes. Brokerages expect short term volatility to continue until legal clarity emerges. Long term prospects will depend on whether the fee is permanently upheld or struck down.
Experts advise investors to monitor court rulings and US policy signals closely before making fresh bets in the technology sector.