Monday, March 6, 2017
IT Stocks Down after US Temporarily stops H1-B premium Visa
US Announced that they will stop H1-B Visa Processing from 3rd April, this has led IT companies stock become under pressure.
Market opens under a great pressure on Monday 6th March, following this development. Several companies like TCS and Infosys stocks are down.
Late on Saturday, the US announced that from April 3 it would temporarily suspend the 'premium processing' of H-1B visas that allowed some companies to jump the queue, as part of overall efforts to clear the backlog. The suspension came even as New Delhi pressed for a fair and rational approach on the matter from a trade and business perspective.
The stocks have been facing risks of rise in costs on the back of a legislation in the US. The legislation, among other things, calls for more than doubling the minimum salary of H-1B visa holders to USD 130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India. All the stocks have posted nearly flat movements in the recent past. Infosys' three-day movement saw it falling 0.27 percent. At 09:51 hrs, it was quoting at Rs 1,022.25, down Rs 8.90, or 0.86 percent on the BSE. The stock touched an intraday high of Rs 1,027.90 and an intraday low of Rs 1,018.00. Meanwhile, TCS was lower nealry half a percent in the past three days.
Posted by Unknown at 7:21 AM