Indian IT Stocks Eye Rebound on US H-1B Visa Fee Clarification
White House confirms the new $100,000 visa fee is a one-time charge, easing investor concerns over recurring costs for tech firms.
American Depositary Receipts (ADRs) for major Indian IT services companies may be poised for a rebound after the White House clarified the nature of a controversial new H-1B visa fee. The clarification eases fears of a significant annual financial burden on a sector heavily reliant on the visa program to serve US clients.
Over the weekend, the White House stated that the recently announced . This comes after shares of leading firms like Infosys and Wipro saw their ADRs fall between 2-4% on Friday. The initial announcement lacked clarity, leading investors to believe the hefty fee could be a recurring annual expense for all visa holders.
The initial market reaction reflected serious concerns about the potential impact on operating margins for these IT giants. The sector has long used the H-1B program to place skilled tech workers at client sites in the United States. A recurring annual fee of that magnitude would have represented a substantial increase in labor costs, prompting a swift sell-off as .
While the one-time fee still represents a significant cost for new hires, the clarification that it is not an annual expense provides critical relief and predictability for the industry's financial planning. Investors will now be watching to see if the ADRs of these IT firms recover their recent losses in the upcoming trading sessions as the market digests the updated, less severe implications of the new policy.