NEW DELHI: Indian stock markets opened lower on Monday as volatility increased after the Trump administration in the US announced significant changes in the H-1B visa policy.
The move has created uncertainty for India’s IT sector, which is heavily dependent on the US for business and deployment of professionals.
The Nifty 50 index opened at 25,238.10, down 88.95 points or 0.35 per cent, while the BSE Sensex started the day at 82,138.99, slipping 487.24 points or 0.59 per cent.
The pressure was most visible in IT stocks, with the Nifty IT index declining by more than 3 per cent in early trade. Shares of TCS, Infosys, Wipro, and HCL Tech witnessed sharp selling pressure.
Devarsh Vakil, Head of Prime Research at HDFC Securities, said the Trump administration has introduced significant changes to the H-1B visa program.
“A new executive order imposes a USD 100,000 application fee for each new H-1B visa. The fee is applicable only for new applicants and will not affect renewals or current H-1B holders. This sudden fee hike has sparked confusion and panic among tech companies and international workers, particularly those from India, which accounts for over 70 per cent of H-1B beneficiaries. Costs of deploying Indian professionals to US client sites for new projects will surge, making on-site assignments less financially viable for many companies,” he said.
