TCS, Infosys shares under pressure on US Visa row

TCS, Infosys shares under pressure on US Visa row

Shares of TCS and Infosys were under pressure today, falling by up to 2 per cent, following reports that the IT majors are being probed in the US for alleged visa rule violations.

The scrip of TCS fell by 2.29 per cent to end at Rs 2,512.05 on BSE. During the day, it lost 3.65 per cent to Rs 2,477.

Shares of Infosys also went down by 1.26 per cent to Rs 1,976.65. It dipped 2.31 per cent to Rs 1,955.50, intra-day.

"Software major TCS was in news today after market reports that the US is probing into probable violations of H1B visas," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio.

According to the US media reports, the Labour Department has opened an investigation against Tata Consultancy Services and Infosys for "possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison".

When contacted, a TCS spokesperson said: "TCS maintains rigorous internal controls to ensure we are fully compliant with all regulatory requirements related to US immigration laws including those related to H-1B visas."

Infosys did not respond to an emailed query.

The US is the largest market for the over USD 140 billion Indian IT services industry. Exports account for over USD 98 billion.

Meanwhile, with TCS and Infosys being probed in the US for alleged visa rule violations, industry body Nasscom today said attempts were being made to portray the Indian IT sector negatively without paying attention to "facts and logic".

Selling was also see in other IT stock where HCL Technologies lost 2.12 per cent, Wipro fell by 1.87 per cent and Tech Mahindra was down 0.94 per cent on BSE.

The IT index ended 1.62 per cent lower at 10,474.24.

In the stock market, the benchmark BSE Sensex settled at 26,425.30, up 54.32 points.

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