IT stocks fell as much as 4% on Friday amid concerns that a bill backing key changes in the H1-B Visa programme, which allows skilled workers from countries such as India to fill high-tech jobs in the US, has been re-introduced in the US Congress.
Shares of Infosys lost 2.50%, TCS went down by 2.18% and Wipro dipped 2.18% on BSE.
These three stocks were the biggest laggards on the benchmark Sensex that ended 119.01 points lower at 26,759.23.
Among others, shares of Tech Mahindra slipped 3.80%, Hexaware Technologies went down by 3.73%, HCL Tech (3.55%) and Mphasis (2.20%).
The BSE IT index fell by 2.54% to end at 9,880.61.
The top four companies -- TCS, Infosys, Wipro and HCL Tech -- together lost over Rs 22,000 crore in market valuation.
“Stocks continued the week-long surge, but with Q3 figures expected to flow in shortly, and with IT stocks bogged down by US visa restriction fears, profit-booking gained traction as the day drew to a close,” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd.
A bill backing key changes in the H1-B visa programme has been re-introduced in the US Congress by two lawmakers who claim that it will help crack down on the work visa abuse.
{{/usCountry}}A bill backing key changes in the H1-B visa programme has been re-introduced in the US Congress by two lawmakers who claim that it will help crack down on the work visa abuse.
{{/usCountry}}The ‘Protect and Grow American Jobs Act’ makes important changes to the eligibility requirements for H1-B Visa exemptions was re-introduced by Republican Darrell Issa and Scott Peters -- both from California.
The bill, among other things, increase the minimum salary of H-1B visa to $100,000 per annum and eliminates the Masters Degree exemption.
The bill comes after a number of companies -- Disney, SoCal Edison and others -- have come under fire for abusing the H1-B Visa programme to replace American workers with foreign workers.