Infosys, TCS, Wipro, HCL Tech shares: H-1B suspension impact, ADR reaction, what's next?

Shares of Infosys Ltd, Wipro Ltd, HCL Technologies Ltd and Tata Consultancy Services Ltd (TCS) are in focus on Friday after the US suspended the Indian IT firms from the permanent Labour Certification Program (PERM). The impact of the move, if any, is likely to be sentimental.

As NASSCOM noted, Indian technology companies have significantly reduced their dependence on H-1B visas over a number of years, while steadily expanding local hiring and building a strong domestic workforce in the US. Consequently, the number of employees transitioning from H-1B visas to permanent residency through the PERM process is also relatively limited.

India's largest IT major TCS said it intends to hire an additional 15,000 people in the US over the next five years, to further augment our local workforce, noting that its PERM applications were in single digits in the last two years and, hence, it does not expect the suspension of the program to impact its workforce strategy and customer engagements.

"Indian IT stocks face a fresh sentiment risk. The decision does not suspend existing H-1B employment, so the immediate operational impact may be limited; however, an extended suspension could complicate employee retention and mobility and increase localisation, recruitment and compliance costs," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.

PERM is the US government system for vetting applications by employers who want to secure green cards for foreign workers and a set in the path towards a green card. This  programme allowed IT firms globally to apply for permanent residency for workers already in the United States on H-1B visas. The US administration accused technology giants of abuses of the process, Bloomberg reported.

The announcement was made on Thursday by Vice President JD Vance and other senior officials as the administration stepped up its criticism of work and study visa programmes. In 2025, a third of all approvals under PEM were for software and computer systems analysis roles, Bloomberg reported.

As per reports, PERM applications had fallen to nil for Infosys Ltd in 2025 and 2024 after standing 781 in 2023. Its American depository receipts (ADR) settled 1.42 per cent higher at $10.70 apiece. Wipro ADRs settled flat at $1.67 apiece, data compiled from Bloomberg suggests.

For TCS, the applications had fallen to 303 from 932 in 2024 and 505 in 2025. In Wipro's case, PERM via applications stood at 204 in 2025 against nil in 2024.

"Indian technology companies operate across more than 80 countries and have consistently demonstrated their commitment to complying with local laws and regulatory requirements. We are confident that they will continue to adhere to applicable regulations in the U.S. as well," NASSCOM said.