- Nifty50 and Sensex opened lower as Indian IT giants' stocks fell sharply
- Infosys, TCS and HCLTech stocks saw a slump due to H1-B visa move
- The Donald Trump administration has revised H1-B visa rules
The Donald Trump administration's move to hike the H1-B visa fee cast a shadow over the markets this morning. Both the National Stock Exchange (NSE) Nifty50 and the Bombay Stock Exchange (BSE) Sensex opened in the red today as stocks of Indian IT giants such as Infosys, Tata Consultancy Services and HCLTech saw a sharp slump after Washington DC's move on H1-B visa, used by a majority of Indian techies working in the US.
In a move that has sparked widespread panic among Indian professionals in the US, the Donald Trump administration announced a steep hike in the H-1B non-immigrant visa fee. The fee, which was earlier between $2000-$5000 was hiked to $100,000 -- about Rs 88 lakh in Indian currency.
As the move was announced, those outside the US feared whether they would need to pay the fee when they returned. Visuals showed people getting off planes at US airports to avoid getting stuck abroad. The Trump administration later clarified that the new fee would apply only to new applicants.
Team Trump has said the policy decision is aimed at discouraging companies from hiring foreign workers. "So the whole idea is, no more will these big tech companies or other big companies train foreign workers. They have to pay the government $100,000, then they have to pay the employee. So, it's just not economic. You're going to train somebody. You're going to train one of the recent graduates from one of the great universities across our land, train Americans. Stop bringing in people to take our jobs. That's the policy here. $100,000 a year for H-1B visas," Commerce Secretary Howard Lutnick explained.
Currently, Indians make up 71 per cent of all the approved H-1B applicants, according to data from US Citizenship and Immigration Services.
New Delhi has said the US move is likely to have "humanitarian consequences by way of the disruption caused for families". "Government hopes that these disruptions can be addressed suitably by the US authorities," it has said.
"Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward. Skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India. Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries," the Ministry of External Affairs said.
