TCS, Infosys, HCLTech: IT stocks in focus as US court strikes down Trump’s $100,000 H-1B visa fee rule

IT services companies such as Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech, and Tech Mahindra are expected to hog the limelight on Tuesday, June 9, following major relief for the companies.

According to news reports, a United States federal judge has struck down the $100,000 fee that US President Donald Trump imposed on new H-1B visas for highly skilled foreign workers, concluding that it constituted an unlawful tax that Congress never authorised.

US District Judge Leo Sorokin issued the ruling in Boston on Monday in a lawsuit filed by 20 Democratic state attorneys general challenging the fee Trump announced in September, which dramatically raised the cost of obtaining H-1B visas.

"...the Court finds that the Policy imposes a tax on H-1B petitions without the requisite delegation by Congress," US District Court judge Leo Sorokin in Boston, Massachusetts, said in a ruling.

H-1B visa controversy: What you need to know

The H-1B visa programme is one of the most important US work visa routes that allows American companies to hire skilled foreign professionals, including a large number of Indian IT engineers.

A proposal by the Trump administration had suggested a steep $100,000 annual fee per H-1B worker, aimed at discouraging companies from hiring foreign talent and pushing them to employ more local workers.

The move had created uncertainty around future visa costs and staffing models for global tech firms.

The rejection of the proposed fee is positive for Indian IT companies such as Tata Consultancy Services, Infosys Limited, Wipro Limited, and HCL Technologies Limited.

These firms depend significantly on H-1B visas to deploy skilled employees onsite in the US for high-value projects.

A sharp increase in visa costs would have raised operating expenses, pressured margins, and potentially forced a shift toward more offshore delivery from India.

The court’s decision removes this cost risk and is seen as a positive sentiment, as it preserves the existing US delivery model that supports the industry’s global competitiveness.

Simply, this means that Indian IT companies can continue their current mix of offshore work from India and onsite work in the US without disruption, which is a key reason they stay cost-competitive.

Other factors to know

At the recent Cognizant AI Forum, CEO Ravi Kumar S offered an optimistic outlook on the demand opportunity emerging from agentic AI for IT and business process (IT & BP) service providers.

During the investor-focused event, the CEO highlighted that based on an analysis of Global 2000 enterprises’ operating expenditure linked to labour exposed to “agentification,” the total addressable market for Cognizant—and its peers—could expand from around $1 trillion to $5–$6 trillion.

The CEO’s keynote, along with supporting presentations, laid out a structured narrative on Cognizant’s response to the evolving IT & BP landscape.

The company reiterated its goal of repositioning itself as an “AI Builder” through a three-pillar strategy: enabling hyperproductivity, industrialising AI, and agentifying the enterprise. It also shared further details on initiatives underway to execute this transformation.

Overall, the commentary signals a positive long-term outlook for IT services companies as they tap into emerging AI-led opportunities.

IT stocks in India

Indian IT stocks have remained one of the most beaten-down segments of the market, with sustained pressure from weak global demand and cautious client spending. Fears of AI disrupting traditional business models have also weighed on investor sentiment, compelling investors to exit what was once a ‘favourite’ sector.

The NIFTY IT index has tumbled around 25% over the past six months, reflecting broad-based selling across major technology counters amid concerns over near-term earnings visibility and slowing deal momentum.

Despite intermittent rallies, the Indian IT sector continues to lag broader markets, underscoring persistent macroeconomic uncertainty in key export destinations.