H-1B compensation deepens the sale of fears for already battered Indian IT stocks. What to expect on Monday?

Indian IT investors were lagging behind after US President Donald Trump signed a proclamation that greatly increased the costs for the H-1B visa program, long considered the backbone of India’s software export. Markets will see how far this shock translates into fresh sales in IT counselors who are already under pressure.

Trump announced that new H-1B-VISA would now attract an annual fee of $ 100,000. An official of the White House clarified that the walk would only apply to new applications, but the signal was sufficient to scare investors. With more than 70% of the H-1B visa holders who are Indians, the move is seen as a particularly heavy blow to the Indian IT sector, which is highly dependent on the American market.

The damage was immediately, with American Depository Vouchers (ADRs) of leading Indian IT companies that sink sharply after the news.

Analysts noted that the setback can weigh more on sentiment than on Fundamentals in the short term. Nilesh Shah, MD van Kotak Mahindra AMC, said that the move Indian professionals would influence more than the IT companies themselves.

“We have to create an ecosystem in India, so that our talent does not have to go abroad. Steps like abruptly changing H-1B standards will ultimately also have adverse effects on the US economy,” Shah added.

Kragenhi Bathini from Wealthmills Securities, however, warned that the costs will undoubtedly rise for Indian IT exporters, making the almost period negative for these shares. “The annual reimbursement of $ 100,000 is a big blow. It was completely unexpected.” Indian IT companies have endured worldwide shocks and economic delays in the past. Balance sheets remain strong. Those who have been invested for the long term can afford to wait and look. “

The timing could not have been worse. Indian IT companies are already struggling with weak income, slows the worldwide question and the impending threat of artificial intelligence that erodes their income basis.

Jefferies recently warned that Between 2025 and 2030, no fewer than a turnover deflation of 20% could activate, whereby companies with a high margin will probably suffer the victims. The sector of the brokerage projects of less than 4% CAGR, with margins under persistent pressure.

Foreign Institutional Investors have already drawn almost RS 62,000 crore from Indian IT shares to the darkness. Trump’s visa shock could accelerate this exodus, at least in the short term.

So far, in 2025, TCS has 23%, Infosys 18%, HCL Tech 23%and Wipro around 15%. Among the medium players, the happiest Minds Technologies has fallen by 20%, while Ltimindree has limited his losses to around 3%.

On Monday all eyes will be about whether domestic investors will undergo the fall or whether panic sales take over. Anyway, Trump’s movement has thrown a new shadow on a sector that is already fighting several headwinds.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)