The dollar dream in danger: IT stocks under the rain post Make America Great Again campaign

The Nifty IT index has come under a fresh bout of selling pressure on Monday, December 12, 2016 post comments made by US President elect Donald Trump on ending the misuse of visa programmes by companies.

All the stocks in the index are trading down by quarter of a percentage point to 2 per cent. IT stocks contribute 14 per cent to Nifty weightage, and therefore they have dragged the overall markets downwards in the early morning session.

President elect did not mention any specific Indian company but was narrating an incident which was related to companies like HCL Tech and Cognizant Technology that hired Indian IT professionals on H-1B visas for contracts obtained from Disney World in Orlando, Florida.

As per NASSCOM's President, ‘Notion that Indian IT workers replace the American workers is mythical. Trump will look at all kinds of ramifications from a business perspective. As opposing to the discriminatory aspect of visa application’.

Trump can either reduce the cap on H-1B visas or raise the fees or as a third option, auction them. In any case in all probability he is anticipated to reduce the number of visas issued.

Biggest Losers: -

Infosys- 1.95 %

Mindtree- 1.5 %

Wipro- 1.2 %

HCL Tech- 1.15 %

TCS- 0.90 %