IT Stocks Fall for Third Straight Day on H-1B Fee Hike; Sensex Drops 386 Points, FIIs Continue Selling

Indian IT stocks extended their losing streak for the third consecutive day on Wednesday as investor sentiment remained weak following the recent sharp hike in US H-1B visa fees.

Being hit with a loss of 0.69%, the BSE IT index ultimately ended at 34,529.91, major IT players seeing red. Mastek Ltd was the biggest loser with a plunge of 3.42%, followed by Infobeans Technologies, dropping 3.41%; Wipro, minus 2.06%; Tech Mahindra, minus 1.30%; TCS, minus 0.86%; and finally down 0.24% was Infosys.

Why IT Stocks Are Falling

The decline comes after the Trump administration announced a one-time USD 100,000 fee on H-1B visas last week. With Indian tech professionals accounting for over 70% of H-1B visa holders, the steep hike poses a major challenge for the IT services sector, particularly outsourcing-driven exports.

“IT stocks underperformed due to H-1B fee hikes,” said Vinod Nair, Head of Research at Geojit Investments Limited.

Broader Market Impact

The bearish trend was not limited to IT counters. The BSE Sensex fell by 386.47 points or 0.47% to close at 81,715.63, while the NSE Nifty fell 112.60 points or 0.45% to close at 25,056.90.

"Negative sentiments were created due to continuous concerns over US visa policy changes and continued FII selling," remarked Siddhartha Khemka, Head of Research- Wealth Management, Motilal Oswal Financial Services Ltd.

Key Takeaways

• IT stocks dragged markets lower for the third straight session.
• H-1B visa fee hike of USD 100,000 sparks concerns for Indian tech exports.
• FIIs continued outflow, adding pressure on equities.
• Both Sensex and Nifty closed lower on weak global cues and policy concerns.