InvestorQ : Why were the IT stocks like Infosys, TCS and HCL Tech almost flat on 23 June despite the visa suspension by Trump?
Aashna Tripathi made post

Why were the IT stocks like Infosys, TCS and HCL Tech almost flat on 23 June despite the visa suspension by Trump?

Answer
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diksha shah answered.
3 months ago


Despite the US President Donald Trump signing a proclamation order suspending H1-B, H2-B and L1 visas, the Indian IT stocks hardly reacted. In the last few years, Most Indian IT companies like Infosys, Wipro and TCS relied on these H1-B visas to send their engineers to client sites and India accounted for 70% of the total H1-B visas issued by the US.

Under the proclamation, the issue of the above visas will be suspended till Dec-20 and will only be issued in the event of a national emergency where such person’s contribution would be vital. Ironically, the NSE IT index was up 1.5% on Tuesday as markets had already factored in a temporary suspension of these visas.

There is also another angle to this non-reaction by IT stocks to the visa suspension. Most IT companies have already hedged their bets by recruiting locally in the US and also work out off-shoring alternatives. Hence impact could be limited. Also, the suspension is only valid till December and anyways travel restrictions are likely to continue till then.