IT stocks snap 3-day losing streak; Infosys up nearly 3%

IT stocks recovered today, up 1.6% after falling as much as 4.1% in the previous two sessions

IT stocks recovered in today’s trade, up 1.6% after falling as much as 4.1% in the previous two sessions on visa concerns.
 
Donald Trump government on Jan 31,2017, introduced a bill in the US Congress that attempts to reform the H1-B visa process. The bill proposes to more than double the minimum wage for visa holders from $60,000 to $130,000.
 
Paring losses of the last two sessions, shares of Infosys advanced 2.6% to Rs 940 on BSE. The stock has tanked 3.4% since the announcement.
 

While TCS, Tech Mahindra and HCL Tech also gained 0.3%, 2.7% and 1.75% respectively, Wipro extended losses to fall 0.7%. The stock has fallen 2.9% in the last two sessions.

 
“The real impact will be difficult to pin down and would be depend upon the time when it actually gets implemented; which according to us could take time. Overall, we remain positive on the IT sector, and currently maintain our picks in the space-HCL Tech and Infosys,” stated Angel Broking in a report.
 
H1B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialised fields. The technology companies go for it to hire tens of thousands of employees each year.