IT shares decline after Donald Trump's immigration curbs

Among largecap IT stocks, Wipro tanked 2% to Rs 457, while HCL Tech was also down 2% to Rs 829

Shares of IT companies such as TCS, Infosys and Wipro slipped up to 4% after US President Donald Trump introduced immigration curbs adding to fears that his 'America First' policy may prove detrimental for Indian software services firms.

Reacting to the development, BSE IT index shed nearly 1% to 9779 points, led by losses in Tanla Solutions (down 4%), Intellect Design Arena (down 2%) and Sonata Software (down 2%). 

Among largecap IT stocks, Wipro tanked nearly 2% to Rs 457, HCL Tech was down 2% to Rs 829, while Infosys and TCS slipped over 1% each to Rs 930 and Rs 2322, respectively. 

Among midcap IT majors, MindTree (down 1.7% to Rs 464) and Hexaware Technologies (down 1% to Rs 199) were also trading lower. 

 “So far, it appears Trump is following through on his poll promises. The IT industry is definitely little bit less optimistic. Indian companies will have to hire more locally and it is going to be difficult if such a sentiment continues,” told Dinesh Goel of ISG, an IT research firm to Business Standard. CLICK HERE FOR THE FULL REPORT

 “The policies hint at the fact that there is no other way but more local hiring. Indian firms have to find ways to do business with the US, a 60 per cent revenue generator (for them).”