BNP Paribas: New H-1B Visa Norms to Have Minimal Impact on Indian IT Stocks

• BNP Paribas analyst Kumar Rakesh believes new H-1B visa norms will have minimal impact on Indian IT stocks due to low company exposure.
• Department of Homeland Security replaced the H-1B lottery with a weighted process favoring highly skilled and paid workers.
• Indian IT firms mitigate impact through increased offshoring, local hiring, and focusing on bringing only essential, high-value experts.
• The IT sector is seen as bottoming out, offering a good hedge against Gen AI concerns, with positive investor sentiment.
• Rakesh recommends Infosys (large-cap) and Persistent Systems (mid-cap) as top picks in the sector.

Why It Matters: New H-1B visa rules pose minimal threat to Indian IT stocks, mitigated by strategic shifts.