Indian equity markets opened on a weaker note today, dragged down by heavyweights in the IT sector after a fresh hike in H-1B visa fees in the United States raised concerns over operating costs and future margins.
Shares of leading IT companies Infosys and Tata Consultancy Services (TCS) slipped in early trade as investors reacted to the development. Market participants fear that higher visa-related expenses could erode profitability for Indian outsourcing firms that rely significantly on sending employees to client locations in the US.
The H-1B visa programme is a crucial channel for Indian IT service providers, enabling them to deploy skilled professionals to handle on-site projects for American clients. A fee hike directly impacts cost structures and may push companies to rethink their staffing strategies abroad.
Market analysts noted that the IT sector, which contributes substantially to India’s export earnings, is particularly sensitive to policy shifts in the US, its largest client market. With margins already under pressure due to global economic uncertainty, the additional cost burden from visa fees is expected to weigh on quarterly earnings.
Broader indices also opened lower as investor sentiment turned cautious. While banking and FMCG counters showed some resilience, the drag from IT heavyweights set the tone for the market’s early performance.
Traders are now watching for management commentary from Infosys, TCS, and other IT majors to gauge how companies plan to mitigate the impact of the fee increase and whether it will influence hiring or project execution in the near term.
