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46m ago

$100,000 H‑1B Fee Sinks Indian IT, Pulling Nifty Lower as GST 2.0 Goes Live

Analysts forecast IT margin pressure alongside consumption support from GST 2.0.

The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo
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Overview

  • Indian benchmarks opened weaker with Nifty near 25,240 and Sensex down more than 300 points as investors reacted to the U.S. visa move.
  • Nifty IT fell roughly 2.5–3% in early trade, with Tech Mahindra down about 5–6% and Infosys, TCS, HCLTech and Wipro losing over 2%.
  • USCIS and the White House said the $100,000 charge is a one‑time fee on new H‑1B petitions filed after Sept 21 and does not affect renewals or current holders, including re‑entries.
  • Strategists warned of higher on‑site delivery costs and potential margin squeeze for Indian IT, flagging shifts toward offshore work, more U.S. hiring or automation; some advised keeping tech exposure low.
  • GST 2.0 took effect with two main slabs of 5% and 18%, and market commentary pointed to a split setup with IT under pressure and consumption‑linked sectors seeing support.