In a turbulent week for the Indian stock market, tech giants and major corporations alike have witnessed a staggering wipeout in market value, as US policy changes sent shockwaves through financial circles. The government’s sudden move to hike H-1B visa fees to $100,000 and slap steep tariffs on pharmaceutical imports has triggered a sharp retreat among investors, slamming the brakes on one of the world’s fastest-growing economies.
IT Sector Bears the Brunt
Leading the decline, Tata Consultancy Services (TCS) saw nearly ₹97,600 crore erased from its market capitalization, ending the week at a 52-week low. Infosys, another heavyweight of the IT industry, lost over ₹38,000 crore. Market sentiment soured rapidly after President Donald Trump’s September 19 announcement of a $100,000 fee on new H-1B visas, a move that particularly affects Indian technology firms that rely on the US for business and staffing.
More than 70 percent of all H-1B visas are held by Indians — a figure that underpins the impact of this policy. Industry experts warn that while the change currently applies only to fresh applications, it poses a serious long-term risk to the growth and profitability of India’s $280 billion IT industry.
Pharma Tariffs Fuel Further Anxiety
Adding to the rout, Trump’s declaration of 100% tariffs on branded pharmaceutical imports has rattled markets further. While India’s generics sector appears insulated for now, uncertainty looms large for pharmaceutical companies with aspirations of exporting patented drugs to the United States.
The combined effect drove the BSE Sensex down by over 2,100 points for the week — a drop of 2.66% — as the index fell to its lowest level in weeks. The broader Nifty IT index recorded its steepest decline in nearly six months, marking a period of intense volatility for investors.
Market Impact Extends Beyond Tech
It wasn’t just IT companies feeling the pressure. Reliance Industries, India’s most valuable firm, saw its valuation slide by over ₹40,000 crore, despite maintaining its top spot. Banking leaders such as HDFC Bank and ICICI Bank also reported massive losses, underscoring the breadth of the selloff.
Analysts believe that these policy shocks could force Indian corporates to rethink their strategies, with some speculating that the era of outsourcing and on-site deployment may need a fresh approach as the US attempts to prioritize domestic jobs over foreign talent.
Outlook: Uncertainty Clouds Future Growth
While some experts say the immediate dent to export revenue and profit margins may be contained, especially if Indian companies adapt to offshore models, the longer-term implications are potentially severe. If the US maintains these elevated visa and tariff barriers, the damage to India’s flagship export sectors could prove significant, weighing on jobs, earnings, and investment sentiment across the board.
As the dust settles, all eyes are on how India’s largest companies and policymakers will respond to these unprecedented global headwinds. For now, however, the mood remains cautious, with many hoping that dialogue between New Delhi and Washington could eventually lead to calmer waters for tech and pharma powerhouses.
