IT Stocks Crash: TCS, Infosys, Wipro, LTIM Fell 2-4%; Nifty IT Down 1,433 Pts, Is H-1B Visa Fees Hike Reason?

The Indian tech stocks crashed sharply on September 22, after the US hiked H-1B visa fees to $100,000 with effect from September 21. Major tech giants such as TCS, Infosys, Wipro, LTIMindtree and HCL Technologies declined by 2% to 4%, dragging down both Sensex and Nifty. The overall NIFTY IT index nosedived by a whopping 1,433 points. Why the H-1B fee hike is the main reason for the latest bearish trend in Indian IT stocks.

Nifty IT Index Crashed:

At the time of writing, the index plummeted by 984.45 points or 2.69% to trade at 35,593.80, from the previous market close of 36,578.25. However, so far in the Monday's trading session, the index has nosedived by a 1,433.15 points to hit an intraday low of 35,145.10.

All stocks on Nifty IT are in deep red.

IT Stocks Fall On September 22:

Currently, stocks like Mphasis, Persistent Systems, Coforge, Tech Mahindra and LTMINDTREE are down by 3.5% to 4%.

Further, heavyweights like Infosys, TCS and Wipro dipped by 2% to 2.6%. HCL Tech also plunged by 1.7%, While Oracle Financial Services dipped marginally.

Why Are IT Stocks Falling Because Of H-1B Visa Fees Hike?

On Trump's $1,00,000 fees hike on H-1B visa, Ponmudi R, CEO of Enrich Money said, "This development sets the tone for testing downside support, though investors remain hopeful the index will hold steady as the week begins. The steep hike in H-1B visa fees is a near-term negative for Indian IT firms, raising offshore deployment costs and forcing a pivot toward onshore or domestic delivery models."

The reason behind Trump's administration raised H-1B visa fees is because they believe this visa program has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour.

"The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security," Trump said in his statement at White House.

Tata Consultancy Services (TCS) holds the second most H-1B visa approvals in 2025 to the tune of 5,505. This is a 229 increase from last year's numbers of 5,280. TCS is among the top 3 largest H-1B visa holders in US.

Meanwhile, Infosys has 2,004 H-1B visa approvals, followed by LTIM with 1,807 H-1B visa approvals and HCL Tech's American company holds 1,728 visa approvals. Azim Premji's Wipro also has 1,431 approvals.

Hence, IT companies have significant exposure to H-1B visa new rules and that could impact their growth.

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