The United States has told India it is considering caps for nations that force foreign companies to store data locally, Reuters said quoting three sources with knowledge of the matter
Technology stocks saw selling pressure on June 20 after a media report indicated that United States is mulling caps on H-1B visas to deter data rules.
Most affected by any such caps would be India's more than $150 billion IT sector, including Tata Consultancy Services and Infosys Ltd, which uses H-1B visas to fly engineers and developers to service clients in the United States, its biggest market.
The Nifty IT index itself fell half a percent, though it recovered from intraday fall of 1.76 percent. Wipro fell most among IT stocks, down 2.5 percent followed by Tech Mahindra (down 1.68 percent), TCS (0.7 percent) and Infosys (0.22 percent).
The United States has told India it is considering caps for nations that force foreign companies to store data locally, Reuters said quoting three sources with knowledge of the matter.
The plan to restrict the popular H-1B visa programme, under which skilled foreign workers are brought to the United States each year, comes days ahead of US Secretary of State Mike Pompeo's visit to New Delhi.
The warning comes as trade tensions between the United States and India have resulted in tit-for-tat tariff actions in recent weeks. From June 16, India imposed higher tariffs on some US goods, days after Washington withdrew a key trade privilege for New Delhi.
Two senior Indian government officials said on June 19 that they were briefed last week on a US government plan to cap H-1B visas issued each year to Indians at between 10 percent and 15 percent of the annual quota. There is no current country-specific limit on the 85,000 H-1B work visas granted each year, and an estimated 70 percent go to Indians.(With inputs from Reuters)Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.