Stock markets likely to open flat; IT firms in focus amid US visa hike

India's equity benchmarks may open little changed on Monday, following last session's profit-booking, with attention on information technology stocks after the US introduced a new $100,000 fee for new H-1B visa applications.

Gift Nifty futures were trading at 25,334.5 points as of 08:03 a.m. IST, indicating that the benchmark Nifty 50 will open near Friday's close of 25,327.05.

US President Donald Trump announced on Friday that companies would now be required to pay higher fees for H-1B worker visas. Last year, 71 per cent of the approved H-1B beneficiaries were Indians.

India's $283 billion IT sector, which generates about 57 per cent of its total revenue from the US, has long gained from American work visa programmes and outsourcing of software and business services.

America-listed shares of Indian IT majors Infosys and Wipro fell 3.4 per cent and 2.1 per cent, respectively, on Friday post the announcement.

According to Jefferies, IT firms are likely to move away from H-1B visas, as the new $100,000 fees threaten to wipe out five to six years of an employee's operating profit. 

Meanwhile, India's major consumption tax cuts, aimed at spurring domestic demand ahead of the festive season, will take effect today. The reforms were announced earlier this month.

Stocks to watch

• Lupin says US drug regulator issued four observations after completing a product-specific pre-approval inspection at the company's Pune biotech facility.
• PNC Infratech receives an order worth 4.96 billion rupees ($56.3 million) for bridge and road construction in Bihar.
• Shipping Corporation signs MoU with BPCL, HPCL and IOC to jointly acquire, own, operate and manage vessels.
• Ceigall India becomes the lowest bidder for 17 billion-rupee solar photovoltaic project with BESS in Madhya Pradesh.