Visa fee hike will not have a long-term impact on IT cos: Sunil Shah

ET Now spoke to Sunil Shah, Director Equities, Indsec Securities & Finance Ltd, on his views on the IT sector.

ET Now: What is your sense on most of these IT companies at this point in time?

Sunil Shah: IT companies, at least in the near term, will not raise the pressures as was stated earlier that its for a 5-year period of visa but when the renewal comes in place yes there will be a pressure on that front.

Having stated that the result season which is gone by the IT companies have come out with the numbers on a very positive note given that the impact of rupee depreciation stood to their advantage but as the renewal process of the visa happens may be in the next quarters or so the impact would be there but it would be miniscule compared to the size of the business that they have at the rate at which they are growing and now with some signs of improvement in the US economy and also given the cost advantage which India has.

This will not be much of a restricted thing and it could be even passed on to the customers from the US as well as the European market. So net-net it is phenomena which will not have a major impact in the long term.