IT stocks brace for visa hit, but see silver lining

Stocks of information technology (IT) companies are likely to see a knee-jerk reaction on Monday after US President Donald Trump imposed a higher $100,000 fee for new H-1B visas as a onetime payment.

- PUNEET WADHWA

“IT stocks are likely to see a knee-jerk reaction on Monday with individual stocks slipping between 3 and 5 per cent depending on the dependence on the H-1B visa. I expect IT stocks to trade lower for some time. They are unlikely to make money for investors. The tide can turn in case there is a rethink on the H-1B visas and the trade negotiations between India and the US reach a viable solution,” said G Chokkalingam, founder and head of research at Equinomics Research.

Thus far in calendar year 2025 (CY25), most IT stocks have underperformed. The Nifty IT index has slipped around 16 per cent as compared to a rise of around 7.1 per cent in the Nifty 50 during this period, ACE Equity data shows.