IT index tanks on US migration ban order

With news of US President Donald Trump banning citizens of seven Islamic countries to enter United States (US) on Friday, a widespread outrage got triggered across the globe against this move. Reacting to the news, the S&P BSE Information Technology index slips about 1 per cent on Monday morning.

The list of seven countries, which have been banned to issue student or employment visas for the next 90 days include Iran, Iraq, Libya, Sudan, Yemen, Syria and Somalia. The move came soon after two US senators of the US legislature proposed a new law for H1B visa holders there.

The Indian IT companies are keeping a close tab on these news as a big chunk of Indian IT employees are deployed on site in America working on H1B and L1 visas. The BSE IT index tanked about 1.06 per cent making a low of 9,779.55 in the first few hours on Monday morning. IT majors Wipro, INFY, TCS, HCL Tech, Mindtree have lost more than 1 per cent during the morning trade.

It would be interesting to watch how sectors like IT and Pharma would react on this in the upcoming days, as these two sectors would be impacted the most for any adverse decision coming from US.