IT stocks plummet as Trump increases H-1B visa costs

Information technology stocks took a beating on Monday, dragging the broader market indices lower, after US President Donald Trump’s move to raise the one-time cost of H-1B visas soured sentiment. The Nifty IT index tumbled nearly 3% against the 0.5% decline in the Nifty. Out of the 10 stocks in the index, nine fell, while one — Oracle Financial Services — dodged the weak trend. Infosys, Tata Consultancy Services and Wipro declined between 2% and 3%, while shares of smaller companies in the sector saw deeper cuts.

The Trump administration’s decision to increase the visa cost has added to concerns over the growth prospects of the sector in the wake of the uncertainty over the impact of AI on the domestic industry and demand slowdown in the US.