IT stocks slide on H-1B visa concerns

Eight IT stocks lost 0.05% to 2.48% at 10:48 IST on BSE on reports that the United States is mulling a cap on H-1B visa for Indians.

Wipro (down 2.48%), Tech Mahindra (down 1.69%), Mphasis (down 1.07%), TCS (down 0.97%), Infosys (down 0.35%), Persistent Systems (down 0.27%), Oracle Financial Services Software (down 0.22%) and MindTree (down 0.05%), edged lower. Meanwhile, HCL Technologies (up 0.14%) and Hexaware Technologies (up 0.08%), edged higher.

Meanwhile, the S&P BSE Sensex was up 162.92 points or 0.42% at 39,275.66. The BSE IT index was currently down 0.52%, underperforming the Sensex.

Media reported that the United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally. The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise.

The move could have an adverse impact on Indian IT companies in the US. US is the biggest outsourcing market for Indian IT firms.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 69.6325, compared with its close of 69.6850 during the previous trading session.

A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.

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