TCS, Infosys, Wipro, HCL Tech, Tech Mahindra Slide As Nifty IT Falls 2.94% After H-1B Visa Fee Hike

Mumbai, September 22, 2025 – Indian IT stocks started early trading with sharp declines, following a significant increase in the one-time H-1B visa fee for new applicants in the US. By 3:00 PM, the Nifty IT index fell 3.14% to 35430.20, down 1148.05 points from 36578.25 at the previous market close. Investors are now worried about the implications this may have on IT firms’ US IT revenues, a substantial revenue market.

Market Opening and Volatility

Beginning at 35,437.90, the Nifty IT index saw a significant move in early trading to a high of 35,781.60 and a low of 35,145.10. Out of the 10 constituents of the index, nine stocks fell and one registered a small gain. Total turnover on volumes of 57.63 lakh shares was ₹889.65 crore, signifying selling activity.

Sector-Wise Impact

Mphasis, one of the largest laggards, saw its stock tumble 4.95%, closing at ₹2,845.70, while LTIMindtree slipped 4.71% to ₹5,250. Persistent Systems and Coforge were also among the stocks that declined by more than 4%. At the same time, IT giants TCS, Infosys, Wipro, HCL Tech, and Tech Mahindra all ended in negative territory, with Tech Mahindra down 3.51% and Infosys down 2.97%. The only outlier in the group was OFSS, which gained +0.52%.

US Government Clarification

The White House also indicated that the $100,000 fee would only apply to new H-1B visa applications, while leaving renewals and re-entry out of the petition process. Although this eased some investor concerns, they remained hesitant due to additional cost burdens and the prospect of a more pronounced slowdown in foreign IT hiring needs. Analysts believe the hikes in fees will increase overall cost structures for firms with high reliance on H-1B labor and challenge margins in the short term.

Investors implications

The increased H-1B visa filing fees spurred investor unease, which resulted in notable selling pressure on IT stocks. The potential increase in operational costs from this decision, as well as hiring slowing down in the US market, weighed on short-term investor sentiment; as a result, IT stocks reacted to downside selling.

REF: https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY IT

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