Indian IT companies over the years have stepped up hiring in the US. According to Kotak Institutional Equities, more than half of Infosys, Wipro Ltd and HCL Tech’s workforce deployed in the US are local hires
MUMBAI: Investors in IT stocks took the news of US visa restrictions in their stride. The Nifty IT index gained 1.5% on Tuesday, in line with the rise in the broad market.
To start with, the restrictions, applicable till the end of the year, were not entirely unexpected. Given rising unemployment in the US and the political rhetoric ahead of the presidential elections, analysts were expecting some curbs.
Since US is the biggest market for Indian IT services companies, such measures typically impact sentiment for IT stocks. But the reason the latest restrictions have been brushed aside is that they will have limited impact on large IT companies in the immediate future.
Travel is anyway restricted due to the covid-19 pandemic. Most IT vendors have transitioned to the work-from-home delivery model, fulfilling onsite work demands from remote locations. Even project transitions have been handled from remote locations.
Source: livemint
