A gauge of India's biggest IT stocks fell 3.6% today on cues that US President Donald Trump's hefty H-1B visa fees will weigh on business in their biggest market.
TCS shares fell as much as 3.4%, the most in more than two months, while those of Infosys slipped 3.9%. Tech Mahindra declined 6.5%. The Nifty IT was the top sectoral loser, dragging the benchmark Nifty 50 0.3% lower. All 10 stocks on the index traded lower.
India’s IT services sector has already taken a hit from disappointing earnings for the April-June quarter and layoff plans by bellwether Tata Consultancy Services Ltd., as customers curtailed technology spending amid flaring trade tensions. The Nifty IT index is down 15% so far this year, compared to the 7% gain in the Nifty 50.
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“Companies will be forced to redesign their pricing plans to either offer an expensive onshore consulting model or a much cheaper offshore program where most of the work will be done outside the US,” Bloomberg Intelligence analysts Anurag Rana and Andrew Girard said.
With inputs from Bloomberg.
{{/usCountry}}With inputs from Bloomberg.
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