Donald Trump
The order of US President Donald Trump’s huge increase in the H-1B visa fee has given a big blow to India’s legendary IT companies and his investors. After this decision, the market value of shares of India’s top 10 IT companies included in mutual funds fell to about Rs 13,000 crore. This decline not only shook the stock market but also raised questions on the situation in the IT region.
H-1B visa change impact on IT sector
According to Trump’s decision H-1B visa The application fee has been increased from $ 1,000 to $ 1,00,000, that is, the fees have increased by 100 times. Although there was no change in the process of getting visas, with such a huge increase, it will increase the cost of companies. This will not only affect the profitability but can also change the new hiring strategy.
Mutual funds big shock
As of September 19, mutual funds had a total shares worth Rs 3.41 lakh crore from the top 10 IT companies, which came down to Rs 3.28 lakh crore by 22 September. That is, there has been a loss of Rs 13,000 crore. The biggest holding in this decline is Infosys, followed by shares of TCS, Fanath Tech, Koforge, Persistent Systems and other major companies.
The loss is limited at the moment!
According to a report by Moneycontrol, brokerroz firm JM Financial has said on the issue that this step will not affect the profits at the moment, but increasing the salary of local employees may bring pressure from 0.15% to 0.50% on the margin of companies. However, if companies increase offshoreing and negotiate at the prices, then this pressure can be reduced. Apart from this, only 1.2% to 4.1% of the top IT companies work on H-1B visas, so the effect of change will not be much on the entire sector.
By this decision Increase spending in IT sector And the possibility of some changes has increased. Although the loss is limited, but in the coming time, companies may have to change their business models. Investors are required to be vigilant at this time because this decision of Trump has questioned the strength of the stock market as well as the IT sector.