IT index seems to be fearful of the new H-1B visa norms

The IT index is trading under pressure on Monday, in the first half of the trading session. The IT index declined 0.91 per cent in early trade and is trading at 10495 levels on an intraday basis, giving the impression that it is frightened of the new norms related to H-1B visas.

Elaborating further, Infosys is trading at Rs 1034, with gain of 0.28 per cent; whereas, Tata Consultancy Services dipped 0.59 per cent, Wipro dipped 0.14 per cent and Tech Mahindra also dropped 0.36 per cent, trading at Rs 2477.7, Rs 491.7 and 502.2 respectively.

US has suspended citizenship and immigration services, which will affect the premium processing of all H-1B visas for up to six months effective from April 3. This development is a result of President Donald Trump's efforts to restrict some foreigners' entry into the country.

The current issue of the temporary suspension of premium H-1B processing will create some process delays for the IT companies. Further, it also puts pressure on their profitability, due to higher operational costs and shortage of skilled workers.

According to NASSCOM, the US government’s move will impact over USD 110 billion of revenue related to the outsourcing industry. The US accounts for over 60 per cent of the Indian IT export revenues.