IT stocks tumble post H1B bill introduction by Donald Trump
Shares of Indian Information Technology companies take a steep fall an hour after US president Donald Trump introduced the H1B reform bill in the US House of Representatives.
BT Online New Delhi Last Updated: January 31, 2017 | 14:20 IST
Shares of Indian Information Technology companies take a steep fall an hour after US president Donald Trump introduced the H1B reform bill in the US House of Representatives over concerns that the new bill will aim to rework the H1-B visa programme that will adversely impact the hiring plans of Indian technology firms.
Shares of TCS plunged by 5.46 per cent to touch an intra-day low of Rs 2,206.55 on BSE.
Infosys lost 4.57 per cent to Rs 905 and Wipro went down by 4.11 per cent to Rs 445.55 on the bourses.
Tech Mahindra tumbled as much as 9.68 per cent to Rs 426 and HCL Technologies declined by 6.25 per cent to Rs 787.20.
The BSE IT index fell by 4.83 per cent to touch an intra-day low of 9401.85.
This news has given a major jolt to Indian IT firms, especially ones that carry out business in the US.
US companies that use this non-immigrant visa to employ skilled workers for speciality occupations will be hit too.
The bill, if passed, would require employers in the US to first offer a vacant position to an equally or better qualified American worker before seeking an H-1B or L-1 visa holder.
This move could affect technology companies that depend on the programme to hire tens of thousands of employees each year.