Indian IT Stocks Drag Benchmarks Lower After US H-1B Fee Hike

Market Update at 10:20 AM: India’s equity markets opened lower on Monday, weighed down by losses in information technology stocks after the U.S. introduced a new USD 100,000 fee for fresh H-1B visa applications. At 9:15 a.m. IST, the Nifty 50 slipped 0.35 per cent to 25,238.1, while the BSE Sensex declined 0.58 per cent to 82,151.07.

Of the 16 major sectors, 11 recorded losses, with the IT index falling 3.1 per cent and leading the sectoral declines. Meanwhile, Small-Cap and Mid-Cap indices remained largely unchanged.

The move follows US President Donald Trump’s Friday announcement requiring companies to pay significantly higher fees for H-1B visas. Last year, Indians made up 71 per cent of approved H-1B applicants. The development could impact India’s USD 283 billion IT industry, which derives around 57 per cent of its revenue from U.S. clients and has traditionally benefited from American work visas and outsourcing of software and business services.

Pre-Market Update at 7:30 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open lower on Monday, September 22, after investor sentiment was hit by the US administration’s sudden decision to impose a $100,000 H-1B visa fee. At 7:00 AM, the GIFT Nifty was trading near 25,317, down by 118 points.

US President Donald Trump signed an executive order mandating the fee for each new H-1B visa application effective September 21, 2025. Existing visa holders remain exempt, but Indian IT firms are expected to be disproportionately affected since they account for 71 per cent of total H-1B beneficiaries. Shares of Indian IT companies such as Infosys, Wipro, and Cognizant declined on US exchanges, reflecting concerns of near-term margin pressure. The Nifty IT index has already slipped 16 per cent in CY25.

Meanwhile, the new Goods and Services Tax (GST) rates came into effect on Monday. The GST Council earlier approved rationalisation of tax slabs from four to two, with rates of 5 per cent and 18 per cent, alongside a special rate of 40 per cent on select items and sin goods. The revision is expected to reduce prices for a large number of products.

This week, investors will track updates on the H-1B visa policy, the impact of new GST rates, India-US trade negotiations, foreign fund flows, gold price trends, and key macroeconomic and geopolitical cues.

On Friday, September 19, Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 390.74 crore, marking their second consecutive session of purchases. Domestic Institutional Investors (DIIs) bought shares worth Rs 2,105.22 crore, extending their buying streak to 19 consecutive sessions.

Indian markets ended lower on Friday as profit-booking in financial and IT stocks weighed on benchmarks. The Nifty 50 slipped 0.38 per cent to close at 25,327.05, while the Sensex declined 0.47 per cent to 82,626.23. Despite the fall, both indices gained 0.9 per cent for the week, supported by a US interest rate cut, domestic tax revisions, and optimism around India-US trade talks.

US equities ended higher on Friday, with all three major indices closing at record highs. The Dow Jones Industrial Average rose 172.85 points, or 0.37 per cent, to 46,315.27. The S&P 500 gained 32.40 points, or 0.49 per cent, to 6,664.36, while the Nasdaq Composite climbed 160.75 points, or 0.72 per cent, to 22,631.48. The rally followed the US Federal Reserve’s first interest rate cut of 2025 and signals of more easing ahead.

Gold prices edged higher in Asian trade, with spot gold up 0.1 per cent at USD 3,687.84/oz. Oil prices also firmed, supported by geopolitical risks in Europe and the Middle East. Brent crude futures rose 0.42 per cent to USD 66.96 a barrel, while US West Texas Intermediate crude was up 0.32 per cent at USD 62.88 a barrel.

For today, Sammaan Capital, Angel One and HFCL will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.