Trump targets Indian IT giants

Congress criticized PM Modi for not protecting Indian IT firms after the US suspended eight companies (Microsoft, Adobe, Cognizant, Infosys, Tata, Wipro, HCL, Capgemini) from the PERM green card program. The US accused these firms of misusing the system, potentially affecting future green card applications. Congress suggested India could respond using laws like the Digital Personal Data Protection Act, 2023.

The Trump administration suspended eight tech firms, including Microsoft, TCS, and Infosys, from the PERM green card process. Microsoft denies replacing US workers, while TCS expects minimal disruption. The crackdown also involves investigations into nine universities over J-1 visa fraud.

Indian equity markets rebounded on Friday, led by IT stocks after TCS reported a 15% YoY increase in net profit to ₹13,884 crore for Q2, with AI revenue crossing $3B. TCS, Infosys, HCL, and Tech Mahindra gained up to 5%. The rally occurred despite US visa restrictions, as investors focused on earnings and growth prospects. The Sensex and Nifty rose 1.16% and 1.23%, respectively. Other factors supporting the market included lower crude oil prices and a stronger rupee.

The White House has barred Microsoft and other tech firms from hiring foreign professionals for permanent roles, citing alleged abuse of the H-1b visa program. According to US Vice President JD Vance, Microsoft is replacing American workers with foreign contractors. Microsoft denies this, stating most visa requests are for existing employees at equal pay. The US will not process new visa applications from the accused companies, which also include Adobe, Cognizant, and others.

The US suspended eight IT firms, including Microsoft, Tata, Infosys, Wipro, HCL, Cognizant, Capgemini, and Adobe, from a green card program for foreign workers. The suspension is due to alleged abuse of the system, with claims that these companies have taken jobs from American workers. The Department of Labour will not process new or pending applications from these companies.

Indian IT stocks (TCS, Infosys, Wipro, HCL Tech, Persistent Systems) may be impacted by US visa policy changes and TCS's Q2 earnings. The US suspended green card processing for these firms, potentially affecting talent retention and costs. TCS reported a 14.45% YoY net profit increase to Rs.13,884 crore and $9.6B in TCV, with AI revenue surpassing $3.1B annually.