Indian equity markets opened in the red on September 22, 2025, dragged down by sharp declines in Infosys and TCS, following the announcement of a significant H-1B visa fee hike by the United States. The move is expected to increase operating costs for Indian IT firms, triggering investor concerns about future margins and contract competitiveness.
What Happened?
The U.S. government announced a revised fee structure for H-1B visa applications, raising costs by nearly 40% for large IT service providers. This directly impacts Indian tech giants that rely heavily on skilled workforce deployment in North America.
Impact on IT Stocks
The Nifty IT index fell over 2.9% in early trade, pulling down broader indices.
Broader Market Reaction
- Sensex opened down 312 points, trading near 84,060
- Nifty 50 slipped below 25,300, losing 98 points
- India VIX rose 3.6%, indicating rising volatility
- FIIs turned cautious, with early outflows reported in tech-heavy portfolios
What This Means for Investors
- Short-term pressure on IT stocks is likely until cost implications are fully priced in
- Export-driven sectors may face headwinds due to policy shifts abroad
- Diversification into domestic-focused sectors like banking, FMCG, and infra may offer stability
- Long-term investors should watch Q3 earnings and management commentary for clarity
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Final Takeaway
The H-1B visa fee hike has rattled investor sentiment, especially in the IT sector, with Infosys and TCS leading the decline. While broader markets remain cautious, the long-term impact will depend on how Indian firms adapt to rising costs and maintain global competitiveness.