Shares of Information Technology (IT) companies are likely to fall on Monday due to concern for a new fee for H-2 visa. US President Donald Trump has announced a large fee of $ 1.5 (about Rs 1.5 million) for the new H-2B visa.

IT shares are likely to fall by 3-5%

Founder and Head of Research of Ecuanomics Research Chokkalingam says, “IT shares can fall on Monday, depending on the number of company H-2B visas, each shares will fall between 2-5%.

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The Nifty IT index fell by 5% in 2

So far, most IT shares have been less performing in the 5th. According to ACE equity statistics, the Nifty IT index has dropped by about 5% during this period, while the Nifty has increased by about 8%.

According to statistics, Oracle Financial Services Software, HCL Technology, TCS and Infosys were the most damaged in the stock market, falling to 19.9% ​​in the calendar year of 9. Only Mphusis overturned the trends, increased by 5.5% in the calendar year of 2.

H-1B visa charge only applies to new applications

According to Independent Market Analyst Ambarish Baliga, the H-2B applications filed before the dates of September 7 will not affect the H-1B applications, and those who are currently out of the United States will not have to pay the fees for re-entering the country.

They believe that this will allow companies to consider how and where to deploy their employees and help reduce the impact on the stock market.

The dependence on the H-1B visa was reduced

Analysts said that another positive thing is that the dependence on the H-1B visa has decreased in the last few years. Abhishek Pathak of Motilal Oswal, Kavi Bhagat and Tushar Dhonde have recently written in a note that in the last decade, Indian IT vendors have reduced their dependence on H-1b visas.

Due to localization programs in the United States and increasing local recruitment, only 5% of employees are on -site. Of these, 3-5% of these employees are on the H-2B visa, which means that the H-2B visa holder is only 2-3% of the active IT seller’s active staff.

Meanwhile, according to Motilal Oswal’s records, applications for H-1B visas have dropped from the highest level (5,3 applications) to 5 applications in 1.

Nevertheless, Chokkalingam believes that trade discussions between India and the United States continue to be a constant, so that this question can be solved in harmony and the IT stock can be booked. Until then, they recommend avoiding IT stocks to investors, as these stock stocks will continue to do less.