IT stocks continued to reel under
selling pressure, falling as much as 3 per cent, wiping-out Rs
44,280 crore from their combined market valuation within two
days amid fresh concerns over H1-B visa issue.
IT stocks continued to reel under
selling pressure, falling as much as 3 per cent, wiping-out Rs
44,280 crore from their combined market valuation within two
days amid fresh concerns over H1-B visa issue.
Shares of TCS dipped 2.71 per cent, Infosys declined by
1.37 per cent, Tech Mahindra lost 0.66 per cent and Wipro went
down by 0.40 per cent on BSE.
These stocks had lost over 4 per cent in the previous
session also, witnessing a combined erosion of Rs 44,280 crore
from their market valuation in two straight sessions.
The BSE IT index today declined by 1.25 per cent to end
at 9,466.90.
HCL Technologies however managed to end in the green, up
0.67 per cent.
A legislation has been introduced in the US House of
Representatives which among other things calls for more than
doubling the minimum salary of H1-B visa holders to USD
1,30,000, making it difficult for firms to use the programme
to replace American employees with foreign workers, including
from India.
"Hike in H1B visa cost will have significant impact on
the financials...as Indian companies are major users of H-1B
visa though they form very less part of the overall workforce
(around 11-15 per cent)," Angel Broking said in a report
yesterday.
"Depending on the companies, they could easily witness
around 60-70 per cent rise in the salaries of the H1B visa
dependent workforce and hence have significant impact on the
net profit of the companies," it added.
H1-B is a non-immigrant visa that allows US companies to
employ foreign workers in speciality occupations that require
theoretical or technical expertise in specialised fields. The
technology companies go for it to hire tens of thousands of
employees each year.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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