Infosys, Tech Mahindra, TCS, Wipro: Why IT shares are down in a rising market today 

IT stocks fall: Shares of Indian IT firms capped gains in the equity market today after US President Donald Trump extended the $100,000 fee imposed on employers sponsoring foreign workers under the H-1B visa programme for another year. The levy, introduced in 2025, was originally scheduled to expire this month.

Shares of Infosys Ltd, Tech Mahindra Ltd, Tata Consultancy Services (TCS) and Wipro Ltd slipped up to 2% in early deals today.

Infosys stock slipped 1.73% to Rs 1031.95 against the previous close of Rs 1050.15. Market cap of the firm fell to Rs 4.19 lakh crore. It has fallen 37% in 2026.

In terms of technicals, its RSI stands at 38.9, signalling the stock is trading neither near the oversold nor in the overbought zone. In terms of simple moving averages, the stock is trading below all short term and long term ranges.

TCS stock slipped 1.25% to a low of Rs 2075.50 today against the previous close of Rs 2101. Market cap of the firm slipped to Rs 7.61 lakh crore. The IT stock is down 35% this year.

In terms of technicals, its RSI has fallen to 32.2, signalling the stock is trading neither near the oversold nor in the overbought zone. In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the Sensex component.

Another IT major Tech Mahindra saw negative sentiment on Monday. Tech Mahindra shares fell 0.39% to Rs 1524.60 in early deals today. Market cap of the firm stood at Rs 1.5 lakh crore.

Wipro stock too fell 1.59% to Rs 163.35 in the current session against the previous close of Rs 166. Market cap of the firm slipped to Rs 1.62 lakh crore.

BSE IT index fell 206 pts or 0.74% to hit a low of 27,406. Nifty IT index too lost 379 pts to 28,475.

On the other hand, Sensex rose 445 pts to 74,740 and Nifty rose 48 pts to 23,394 in early deals today.

Trump extended the measure through a presidential proclamation issued on Friday, while also stepping up scrutiny of companies that hire foreign workers while reducing their US workforce.

In the proclamation, Trump said the introduction of the fee in 2025 had resulted in a 92% decline in H-1B registrations from large IT outsourcing companies. Indian professionals and workers continue to account for the largest share of beneficiaries under the US H-1B visa programme.

Separately, Trump cleared an executive order directing federal agencies to subject H-1B visa applications to greater scrutiny when they are filed by companies that are laying off American employees or planning job cuts that could affect similarly placed US workers.

The latest measures are expected to increase compliance requirements for companies relying on the H-1B programme, particularly large technology and IT services firms that use the visa route to recruit specialised foreign talent.

The H-1B programme has remained a key channel for US employers to hire skilled workers from overseas, with Indian technology professionals making up a significant portion of visa beneficiaries. The extension of the fee, coupled with tighter scrutiny of employers, could add to the cost and complexity of hiring foreign workers in the US.

In August end this year,  tech industry body Nasscom urged US to reassess the role of the H-1B visa programme in addressing skill shortages, amid the Trump administration's proposal to impose a fee of more than $100,000 on new H-1B visas.

Nasscom said the number of H-1B visa workers employed by Indian IT companies has declined significantly over the past five years, as technology firms have increasingly expanded their local workforce in the US.

The industry body highlighted the shift as Indian IT companies continue to increase hiring and build delivery capabilities within the US, reducing their dependence on overseas workers even as the H-1B programme remains an important channel for accessing specialised talent.