The US-listed shares of Infosys and Wipro came under pressure overnight after US President Donald Trump signed an executive order restricting the entry of certain H-1B visa holders into the country. Infosys ADRs fell nearly 4%, while Wipro ADRs declined 2%.
At the core of the market reaction is the sharp rise in costs for new H-1B applications. Under the new rule, a mandatory $100,000 payment must accompany or supplement petitions for fresh applications. The US state department will have the authority to deny petitions if the additional fee is not paid.
Analysts say the hike could render the H-1B program unviable in its current form, making it unsustainable for companies dependent on sending Indian tech workers to the US. While the order does not affect existing H-1B holders already in the US, it raises significant concerns for future talent mobility.
North America remains the most critical geography for Indian IT services, contributing anywhere between one-third to two-thirds of revenues for top players like Infosys, TCS and Wipro. This makes the sector particularly sensitive to changes in US visa policies.
The India-listed shares of Infosys, TCS, Wipro, and their peers are expected to react to this development when markets reopen on Monday, especially after the Nifty IT index closed the week with gains of 1–3%.