Tata consultancy services: The day of Tata Consultancy Services Limited (TCS), the country’s largest IT service provider, is not going well nowadays. On Thursday, September 25, TCS shares came close to 52-weeks low level. Indian IT companies are in bad shape due to new rules regarding H-1B visa from President Donald Trump in America. The market cap of these companies has lost about 2 lakh crores.

TCS shares fall drastically

Last year, on 13 December, TCS shares reached a record high level of Rs 4,494. Since then, it has declined by 35 percent. In the last few days, it has been the worst performance share on the Nifty IT index. Alam is that the TCS is reaching close to the oversold zone on the chart, whose relative strength index (RSI) is at the level of 32. RSI reading below 30 means that the share is in the ‘oversold’ zone. After TCS, HCLTECH shares have fallen by 27 percent so far.

Shares of these companies also fell

According to the Economic Times report, in the last 11 months, TCS shares have declined by 29 percent and it is still going on. This has caused a loss of Rs 4.5 lakh crore to the company’s market cap. TCS’s market cap was Rs 10,70,013 crore till Thursday, 25 September. Despite such a big decline, it still remains on its position of the country’s largest IT company. After TCS, the shares of Persistant Systems and HCL Tech have fallen by about 2 percent, while Wipro and Coforge’s shares have declined by more than 1 percent. The shares of Infosys, Emphasis and Tech Mahindra have also declined by about 1 percent, while LTIIMINTRI shares were trading on the red mark with a slight decline.

What is Trump’s new decree?

Trump recently increased the fees for H-1B visa to $ 100,000. Last year, most H-1B visas were issued by American companies to Indians. India alone was 71 percent in the Total Issured H-1B visa, while China stood at 11.7 second place. Trump’s maximum impact has been affected by Trump’s increase in H-1B visa fees because the US market is very important for Indian IT companies.

Now, due to increase in fees, the expenditure being incurred on clients in the US IT market may decrease. This can increase the cost of Indian companies. With the increase in fees, Trump has also proposed to eliminate the lottery system for allotment of H-1B visa and suggested to replace it with a wedge-based selection process. That is, while issuing the visa, priority will be given to those foreign workers who will apply more salary employees.

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