Reuters reveals U.S. tells India it is considering H-1B visa limits; market reacts

Reuters exclusively reported on June 19 that the United States had told the Indian government it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, widening the two countries’ row over tariffs and trade. The H-1B visa restrictions being planned, however, were not targeted only at India and would apply to all other countries who impose stringent data storage rules which hurt American companies, Reuters sources said. Following the Reuters report, NYSE-listed American Depository Receipts (ADR) of Infosys fell 1.4 percent, while Wipro’s ADR dropped 3 percent. The companies’ stocks listed in India also tumbled, with the local IT index registering its biggest single-day fall in more than five weeks.