Indian information technology company stocks shrugged off worries over US green card rule changes that will make it difficult for them to send staff to on-site.
By Kshitij Bhargava
Indian information technology company stocks shrugged off worries over US green card rule changes that will make it difficult for them to send staff to on-site. IT stocks such as Infosys, Wipro, HCL Technologies rose today by as much as 1.41%, with TCS being the only major loser, down 0.94%. After changing the rules for H1B visa seekers late last year the US Supreme Court has now paved the way for the Donald Trump Administration to get strict on green cards as well. The US Supreme Court lifted an injunction on a rule that could possibly see many in fray for a US Green Card face rejection based on their use of state-sponsored aid.
The new public-charge rule was brought by the US government in August 2019 and immediately was challenged across the country resulting in five trial judges entering injunctions blocking it. Indian IT companies that make full use of H1B visas and Green cards to send their employees from India to the US have however been able to shrug off fears of likely impact on operations. TCS, which is the biggest beneficiary of US Immigration rules among Indian peers, fell 0.94% to trade at Rs 2163 in the afternoon trade. However, Infosys was up by 1.27% along with Wipro 1.09%, HCL 1.11%, Tech Mahindra 1.10% and MphasiS 1.20%. Nifty IT index was up by 0.36% as 7 of the 10 companies traded in the green.
Both benchmark indices were looking up in today’s trade, with BSE Sensex gaining 322.4 points while NSE Nifty 50 rising 100 points. The likely impact of changing immigration rules will be seen in the next two quarters as tech firms brace for a new and complex H1B visa application process and tighter Green Card rules.