How will Trump's $100,000 H-1B levy impact Indian IT earnings?

ET BureauLast Updated: Sep 23, 2025, 05:48:00 AM IST

Synopsis

Brokerages anticipate a limited impact on Indian IT companies' earnings due to Donald Trump's $100,000 H-1B levy. They expect increased offshoring and localization to largely compensate for the levy. Nomura, Kotak, and BofA suggest accumulating large-cap stocks like Infosys and TCS during market dips, viewing the disruption as temporary.

Brokerages said the earnings hit for Indian IT firms on account of Donald Trump’s $100,000 H-1B levy is likely to be modest and largely offset by higher offshoring and localisation.

Agencies

Nomura, Kotak and BofA see the disruption as short-lived and are advising clients to accumulate largecap names on weakness, with Infosys, TCS, HCL Tech and Tech Mahindra among their top picks. Some brokerages also see selective opportunities in midcaps such as Coforge and Firstsource.

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