H-1B Visa Rules Changes: Infosys, TCS, other IT stocks set to react on Wednesday - CNBC TV18
Indian IT stocks came under focus as possible changes to the US H1B visa framework raised concerns about future cost pressures. Large technology firms such as Infosys, TCS, HCLTech, Wipro and Coforge rely heavily on skilled professionals working onsite in the United States. Any tightening of visa norms or increase in compliance costs could push companies to spend more on local hiring, higher wages, or operational restructuring. Analysts note that while Indian IT majors have gradually reduced dependency on H1B visas by increasing local recruitment and near-shore delivery, margins could still face short-term stress. The market reaction reflects uncertainty rather than immediate damage, as the final shape and timing of policy changes remain unclear. Over the long term, firms with strong automation, diversified global delivery models, and robust client pipelines may be better positioned to absorb regulatory shifts. Investors are closely tracking developments for cues on earnings outlook and sector valuations.
The Key points
- H1B visa changes may increase operating costs for Indian IT firms
- Infosys, TCS, Wipro, HCLTech, Coforge most exposed to US policies
- Higher local hiring in the US could pressure profit margins
- Companies have reduced H1B dependence over recent years
- Automation and offshore delivery can limit long-term impact
- Near-term stock movement driven by policy uncertainty
- No immediate earnings hit expected without final rule clarity
- Large players better placed than mid-tier IT firms
- Currency and deal wins may offset visa-related costs
- Investors watching US policy updates and management commentary
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