Markets Slip as Infosys, TCS Shares Drop Amid US H-1B Visa Fee Hike

Markets opened lower today as the announcement of a steep increase in the US H-1B visa fee sent shockwaves through Indian IT stocks . The hike, which pushes the visa fee from $2,000–$5,000 to a staggering $100,000, has unsettled investors and professionals alike. The H-1B visa is a vital channel for thousands of Indian tech workers employed by US companies, making the move a significant blow to the sector. Indian IT giants such as Infosys, Tata Consultancy Services, and HCLTech saw their share prices slump sharply in early trading. The US administration clarified that the new fee would apply only to new applicants, but uncertainty still prevails. The government in New Delhi has expressed concern over the move’s humanitarian and economic consequences and hopes for a resolution that considers mutual benefits in innovation and talent mobility.

Impact on Indian IT Stocks and Market Sentiment

The sharp increase in the H-1B visa fee rattled Indian stock markets, especially IT sector shares. Infosys, TCS, and HCLTech opened with significant losses as investors reacted to potential disruption in one of the industry’s main revenue streams—US-based contracts. The NSE Nifty50 and BSE Sensex indices both opened in the red, reflecting broader market anxiety. The new visa fee poses a major challenge to Indian IT firms that depend heavily on US client engagements and on sending skilled professionals abroad. This sudden policy shift risks delaying or limiting the movement of talent, which could hurt revenue growth and investor confidence in the near term.

What the H-1B Visa Fee Hike Means for Indian Professionals

The H-1B visa is the primary route for Indian IT professionals to work in the US, accounting for 71% of all approved applicants. The hike from a few thousand dollars to $100,000 per visa has created widespread panic among the Indian tech community. Many are worried about the cost implications of traveling in and out of the US. Scenes at US airports showed people hesitant to disembark to avoid visa complications. The US administration later clarified that the fee hike applies only to new visa applicants, but the uncertainty has already triggered concerns about job security and future opportunities for Indian workers in the US tech ecosystem.

US Government’s Intent and Policy Rationale

The Trump administration has stated that the visa fee hike aims to discourage companies from hiring foreign workers, especially in the tech sector. The policy is designed to encourage companies to train and employ American graduates instead. Commerce Secretary Howard Lutnick explained that making foreign workers expensive would shift hiring focus back to US talent. This aligns with the administration’s broader protectionist approach to employment and immigration. However, this sharp change raises questions about how US companies dependent on skilled Indian workers will adapt to increased costs and a potentially limited talent pool.

India’s Diplomatic and Industry Response

India’s government expressed serious concern about the visa fee hike’s humanitarian impact and potential disruption to families. It hopes that US authorities will address these challenges constructively. The Ministry of External Affairs stressed the importance of skilled talent mobility for innovation, economic growth, and bilateral cooperation. Both Indian and US industries have a shared stake in maintaining a smooth flow of talent. Policymakers in both countries are expected to assess the new visa rules carefully, balancing domestic interests with the strong people-to-people and business ties that have fueled decades of technological collaboration and economic benefits.