IT stocks gone for a toss today after the news sentiment on H1-B visa reform hits D-Street. NIFTY IT Futures down 3.3%. IT Major TCS closed down 4.5%. INFY and HCL Futures able to find buyers at the bottom with descent recovery from the bottom but still down 2.3% and 3.7% respectively. Wipro is the least affected of the all and stock is down 1.7%.
TCS Futures – Daily Charts
INFY Futures – Daily Charts
HCLTECH Futures – Daily Charts
WIPRO Futures – Daily Charts
H-1B Reform Bill Introduced In U.S. House Of Representatives
A legislation has been introduced in the U.S. House of Representatives which among other things calls for more than doubling the minimum salary of H-1B visa holders to $130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India.
The High-Skilled Integrity and Fairness Act of 2017 introduced by California Congressman Zoe Lofgren prioritises market based allocation of visas to those companies willing to pay 200 percent of a wage calculated by survey, eliminates the category of lowest pay, and raises the salary level at which H-1B dependent employer are exempt from non displacement and recruitment attestation requirements to greater than $130,000.
This is more than double of the current H-1B minimum wage of $60,000 which was established in 1989 and since then has remained unchanged.
Source – Bloombergquint