Visa worries drag IT stocks, analysts unwary of Trump’s comments
IT stocks were battered down on fears that the US may have stricter norms for H1B visa. The IT index has fallen over 1 percent with TCS , Infosys and Wipro losing around 1-2 percent Monday. The H-1B is a non-immigrant visa in the United States which allows US employers to temporarily employ foreign workers in specialty occupations.
The 1990 H-1B visa program allows US employers to import up to 65,000 foreign workers with “highly specialized knowledge”. According to reports Trump may reduce the cap on H-1B visas or raise the fees or auction them. However, analysts say the threat may not spell much trouble for the sector as tech employment in the US is extremely low at 2-3 percent.
Last year, top 6 Indian IT had 16 percent share in new H-1B visas.