New H-1B Rules Shake Indian IT Shares, Experts See Resilience

• US abolishes H-1B random lottery, implementing a weighted selection prioritizing higher skills and salaries, effective Feb 27, 2026.
• A $100,000 H-1B visa fee, upheld by a federal judge, could impact Indian IT margins by 6-7%, affecting top companies by $1 billion.
• Indian IT shares (Infosys, TCS, Wipro) saw initial declines up to 1% due to the new rules and fee.
• Experts believe Indian IT can mitigate impact through offshoring, local hiring, and sending only essential, high-paid experts.
• BNP Paribas and Kumar Rakesh foresee no significant negative impact, citing sector resilience, improved valuations, and positive macro data.

Why It Matters: Despite H-1B rule changes and new fees, Indian IT is expected to adapt and remain resilient.