IT stocks were among the top losers today after US President Donald Trump signed an executive order preventing federal agencies from contracting or subcontracting foreign workers from hiring.
Shares of Tech Mahindra (3.18%) , HCL Tech (2.15%) and Infosys (1.29%) were the top losers on Sensex in afternoon trade. TCS share too fell 1.11% to Rs 2226 intra day against previous close of Rs 2251 on BSE. On an intra day basis, Tech Mahindra share slipped 3.29% to Rs 651.4 against previous of Rs 673.55 on BSE.
Similarly, share price of HCL Technologies has lost 2.69% intra day to Rs 687.05 against previous close of Rs 706.05. Infosys stock plunged 1.70 % to Rs 941.05 against previous close of Rs 957.35 on BSE. Nifty IT index was trading 1.20% or 215 points lower at17,759. Intra day, it fell 1.38% to 17,716. BSE IT index fell 165 points to 17,967 in afternoon trade.
The move to sign executive order came a month after the Trump administration on June 23 suspended H-1B visas along with other types of foreign work visas until the end of 2020 to protect American workers in a crucial election year. The new restrictions took effect from June 24.
H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise.
Maanwhile, Sensex and Nifty were trading higher in afternoon trade.
While Sensex gained 570 points to 37,509, Nifty rose 156 points to 11,047 powered by rallies in Reliance Industries (5.64%) and HDFC Bank (5.78%) shares.
RIL share price rose on reports that the oil conglomerate would soon acquire Chennai-based Netmeds as part of its broader consolidation in the pharma e-commerce industry. Reliance's entry through this yet-to-be-announced deal with Netmeds is expected to around $120 million.
HDFC Bank share gained in early trade today amid reports that banking regulator RBI had cleared name of Sashidhar Jagdishan as the next CEO of the private lender. Jagdishan will succeed Aditya Puri who will retire from the top post on October 26. Jagdishan will take over from Puri on October 27 for a period of 3 years.