H-1B visa fee hike triggers sharp selloff in Indian IT stocks, Rs 84,000 crore erased in a day

A steep hike in US H-1B visa fees triggered a sharp selloff in Indian IT stocks on Monday, wiping out nearly ₹84,000 crore in market value across leading tech firms.

Infobeans Technologies led the plunge with a staggering 8.93% fall, followed by Hexaware Technologies which dropped 7.08% on the Bombay Stock Exchange. LTI Mindtree fell 4.54%, Persistent Systems shed 4.19%, and Tech Mahindra slipped 3.20%. Tata Consultancy Services lost 3.02%, Infosys declined 2.61%, Wipro dropped 2.25%, and HCL Tech eased 1.84%.

The collective erosion in market capitalization for these firms reached ₹83,994.45 crore. The BSE IT index closed 2.73% lower at 34,988.20, mirroring investor anxiety over potential long-term margin pressures.

Tata Consultancy Services and Infosys — both of which generate more than 50% of their revenue from the United States — fell more than 2.5% each in afternoon trade. "Market sentiment turned negative as investors reacted to the higher cost burden that will arise from the revised visa fee structure," analysts said, citing future implications for earnings from FY27 onwards when new visa petitions begin under the revised structure.

US President Donald Trump, in a proclamation signed Friday, approved a $100,000 fee on H-1B visa applications. On Saturday, a White House official clarified that the new charge would apply only to new applicants, not renewals. 

The fee hike directly impacts Indian IT companies, which rely heavily on the H-1B visa program to deploy skilled professionals to the US. According to industry estimates, Indian nationals account for over 70% of all H-1B visas issued annually.

The broader market also ended in negative territory for the second consecutive session. The BSE Sensex lost 466.26 points or 0.56% to close at 82,159.97, while the NSE Nifty dropped 124.70 points or 0.49% to settle at 25,202.35.