'Keep tech exposure at ...': Ambareesh Baliga as IT stocks tumble on H-1B fee hike

Market expert Ambareesh Baliga on Monday advised investors to keep their exposure to technology stocks at the lowest possible levels for now, citing prolonged weakness in earnings and fresh headwinds from the US.

"Technology has a huge sort of exposure as far as Nifty is concerned. So, you can't ignore tech but then possibly in the last seven-eight quarters, people have reduced their position in tech. I mean still we are not seeing that silver lining," he told Business Today.

Baliga pointed out that expectations of a rebound in order flows didn't materialise. "As far as the earnings are concerned, we are not seeing a decent uptick. Every quarter, we assume that possibly in the next two quarters, we could see that uptick in terms of order flows but that's not been happening. On top of that, we have this adverse news which has come from the US. I think it'll take a while longer," he said.

Baliga recommended limiting technology sector exposure to around 5 per cent of one's portfolio at present, lower than the segment's weightage in Nifty.

IT stocks came under heavy selling pressure today after the White House announced a revised H-1B visa fee of $100,000. The Trump administration clarified that the new fee is a one-time payment, applicable only to new petitions filed after September 21, 2025, and will not impact current visa holders.

The US Citizenship and Immigration Services (USCIS) issued FAQs on President Donald Trump's proclamation "Restriction on Entry of Certain Nonimmigrant Workers," signed on September 19, 2025, specifying that the $100,000 payment must accompany all new H-1B visa petitions, including the 2026 lottery.

The USCIS confirmed that H-1B petitions filed before September 21, 2025, will not be affected by the new fee. It also clarified that current visa holders outside the US will not be required to pay the fee when re-entering the country.

In its statement, the USCIS said: "This Proclamation does not apply to any previously issued H-1B visas or to petitions submitted prior to 12:01 am Eastern Daylight Time on September 21, 2025. It does not change any payments or fees required for H-1B renewals."

Meanwhile, sub-index Nifty IT was last seen trading 2.43 per cent lower at 35,687.95.