IT stocks under pressure? How Trump's $100K H-1B fee may hit your portfolio

Trump's $100K H-1B visa fee may shake IT stocks, but experts say long-term investors need not panic

US President Donald Trump’s recent executive order increasing the H-1B visa fee from $4,500 to $100,000 has led to a fall in Indian stock market. While this move targets skilled-worker visas, Indian retail investors with exposure to IT stocks and funds are watching closely.

Short-Term Pressure on IT Stocks

Om Ghawalkar, market analyst at Share.Market, says the fee hike “raises IT costs, squeezing margins moderately initially as firms absorb some impact. Revenue growth may slow if clients hesitate on offshore work. Stock prices could dip short term on weakening earnings estimates.”

 

He adds that companies with diversified delivery models and strong digital offerings can adapt and rebound, advising retail investors to “avoid panic-selling but monitor valuations. Opportunistic trimming is okay if valuations run too hot.”

 

 

Shweta Rajani, head-mutual funds at Anand Rathi Wealth, notes that the direct hit to large-cap IT margins is modest, estimating a 0.3–1 per cent impact on FY27 EPS(earnings per share). She highlights that mid-cap IT stocks like Birlasoft and Persistent may see larger effects, but “most large-cap companies can offset some costs through offshoring, local hires, or sharing costs with clients.” For long-term SIP investors, she recommends staying invested rather than altering portfolio allocations.

 

Sitashwa Srivastava, founder & chief executive officer of Borderless, a global investment platform, echoes the sentiment. “Stocks may correct in the short term, but long-term demand for cloud, digital, and AI services is intact. Retail investors should avoid panic exits and focus on companies with diversified global delivery models.” 

Should you rotate sectors?

While short-term sector rotations may appear tempting, the experts advise a measured approach. Ghawalkar suggests reallocating into resilient sectors such as domestic consumption, BFSI, or manufacturing to stabilise portfolios, but cautions against fully exiting IT. Srivastava adds, “Sector rotation should be strategic, not emotional, holding quality IT names while directing new inflows into sectors benefiting from capex and credit growth.”

 

Currency impact and global exposure

The $100,000 visa fee may indirectly strengthen the dollar and weaken the rupee. Ghawalkar notes that a weaker rupee could boost IT exporters’ rupee revenues, partially offsetting margin pressures, while Srivastava points out that global fund returns in dollar terms may remain stable, and gold could serve as a short-term hedge. Rajani adds that broader dollar strength depends more on Fed policy and global factors than on H-1B restrictions alone.

 

Long-term view for investors

All three experts agree that this is largely short-term noise. Ghawalkar says dips could be buying opportunities, Rajani advises maintaining a long-term SIP strategy, and Srivastava suggests IT should remain a core holding, balanced with domestic growth sectors. 

 

Bottom line: For retail investors, the H-1B fee hike is a reason to review valuations, not abandon IT exposure. Diversification across sectors, global funds, and gold remains the key to navigating temporary volatility.