TCS,Wipro and infosys in red after US President Donald Trump announce H-1B visa might ban

TCS,Wipro and infosys in red on June 22 when reports made rounds that the US may ban non-immigrant visas such as H-1B.

Reason Behind it and its impact:

As unemployment rate increases in the US due to Covid pandemic ( for April it was 14.7 percent, which was the highest since 1948), US President Donald Trump announce a new plan .He decided to suspend temporary work visas including the highly-coveted H-1B visa today. The visa restrictions could impact 2.4 lakh people from different parts of the world. Indians could be the worst affected lot as Indian IT professionals dominate the list of successful H-1B visa applicants.
 The visa restrictions would impact those currently working in the United States on a work visa.

In a TV interview, Trump had said he will announce new visa restrictions on Sunday or Monday. There will be only a few exclusions, Trump said, when asked about upcoming rules on several different visa categories, including the H-1B program for high-skilled workers.

“In some cases you have to have exclusions. You need them for giant businesses where they need certain folks that are coming certain an extended time," Trump said.

"It is more of pre-election rhetoric and won't have much impact on IT players since they have already hedged against that so it will have the marginal effect," said Sanjiv Bhasin, Director at IIFL Securities.