IT stocks in the red

Once again the visa row for IT companies has come to haunt while they are still reeling under the previously imposed restrictions.

The Trump administration is now looking at imposing restrictions on intra-company employees transfer from overseas offices, like from India to USA. This is known as a L-1 visa where L-1A visa is granted to managers, whereas the L-1B visa is given to professionals. The target date for the proposed draft rules is September 2020.

Over the past few months, there has been an increase in the spate of denials of H1-B applications on the ground that the job is not a speciality occupation.

Following on the heels of this, Goldman Sachs has put out a report wherein it has downgraded counters such as TCS, Wipro, and Mphasis as it feels the entire sector will face cyclical hiccup ahead and the current valuation of the sector is at premium to historical average.

The BSE IT Index is largely in the red with 34 stocks covered in this index in the negative while 14 are in the green.