India’s top listed companies faced a sharp erosion in market value on September 28, 2025, after the U.S. administration led by President Donald Trump announced a steep hike in H-1B visa fees. The move triggered a sell-off in IT and tech-heavy portfolios, with Tata Consultancy Services (TCS) suffering the largest single-day valuation loss of ₹97,597 crore.
Market Cap Impact – Top 10 Firms
The combined market cap erosion across these firms exceeded ₹4.16 lakh crore, making it one of the steepest single-day losses in recent quarters.
Why the H-1B Fee Hike Matters
1. Cost Burden on IT Firms
The revised fee structure increases per-employee visa costs by up to 40%, impacting margins and contract viability.
2. Talent Mobility Disruption
Indian IT firms rely heavily on onsite deployment for U.S. clients. Higher costs may lead to project delays and renegotiations.
3. Investor Sentiment
Global funds trimmed exposure to Indian tech stocks, citing policy unpredictability and earnings risk.
4. Currency Volatility
The rupee’s continued weakness adds to cost pressures, especially for firms with dollar-denominated expenses.
What This Means for Investors
- Short-term caution is advised in IT-heavy portfolios
- Diversification into domestic sectors like infra, FMCG, and banking may offer stability
- Watch Q3 earnings and management commentary for clarity on cost absorption
- Long-term outlook remains positive for firms with strong offshore delivery models
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Final Takeaway
The H-1B visa fee hike has triggered a sharp correction in India’s IT sector, with TCS leading the losses. As market cap erosion crosses ₹4 lakh crore across top firms, investors must stay alert to policy developments, earnings guidance, and sector rotation strategies.