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IT Selloff Drags Sensex 466 Points, Nifty to 25,200 on U.S. H‑1B Fee Shock

A White House clarification that the $100,000 charge applies only to new H‑1B applications eased uncertainty, yet Indian tech stocks still priced in higher structural costs.

While the Fed balances a weakening labor market and stubborn inflation, investors are cheering the prospect of a rate-cutting cycle.
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
A TV on the floor of the New York Stock Exchange shows Federal Reserve Chair Jerome Powell on Wednesday.

Overview

  • President Donald Trump signed an order lifting the fee for new H‑1B visa applications to $100,000, with the administration citing abuse of the program that displaces U.S. workers.
  • Indian benchmarks closed lower as IT led losses, with the Sensex down 466 points at 82,160 and the Nifty off 125 points at 25,202 after early, steeper declines.
  • The Nifty IT index fell about 2.5–3% after an initial drop of nearly 4%, as TCS, Infosys, Wipro, HCLTech and Tech Mahindra slid, with Tech Mahindra among the top losers.
  • U.S. officials said the levy applies only to new applicants and not to renewals or current visa holders, which helped markets stabilize from intraday lows.
  • Analysts warned the fee hike raises delivery costs and could pressure margins for outsourcing firms that derive a large share of revenue from the U.S., even as domestic GST changes supported pockets of consumption and financials.