3 hrs ago
Infosys Hits 52-Week Low as Immigration and AI Concerns Weigh
Shares of two large Indian technology companies fell in the United States.
Infosys reached its lowest share price in a year, and Wipro shares also declined.
Investors are worried that new US immigration rules could affect technology companies that employ skilled workers from other countries.
US officials said some companies were removed from a programme connected to permanent residency, alleging fraud and saying they want more American hiring.
Investors are also concerned that companies may spend less on technology and that AI could change traditional IT work.
Infosys has reduced its forecast for revenue growth this year.
Meanwhile, Tata Consultancy Services reported higher revenue and more revenue from AI services.
Its results may give investors clues about how Indian IT companies are doing with AI.
Oil prices also rose as uncertainty about the war with Iran weighed on markets.
Infosys ADR fell 2.7% to $10.28, a new 52-week low, while Wipro ADR dropped 2.99% to $1.62.
Investors are concerned about US immigration policy changes, uncertain technology spending, and AI’s effects on traditional IT services.
US officials said Microsoft, Adobe, and other large IT companies were suspended from a permanent-residency programme, citing alleged fraud and a goal of hiring more American workers.
Infosys has lowered its full-year revenue growth forecast to 1.5%-3% in constant-currency terms, or -0.2%-1.3% after adjusting for mergers and acquisitions.
Tata Consultancy Services reported annualised AI revenue of $3.1 billion and quarterly revenue up 11.2% year over year, as US stock indexes mostly traded lower.
- Who
- Infosys and Wipro, with investors also watching Tata Consultancy Services and US technology companies.
- What
- Infosys and Wipro ADRs fell amid concerns about US immigration policy, technology spending, and AI.
- Where
- On Wall Street, with Tata Consultancy Services reporting results in India.
- When
- Thursday; prices were reported at about 11:17 a.m. ET, and US market levels at about 11:20 a.m. ET.
- Why
- Investors were concerned about US immigration changes, economic uncertainty, technology spending, and AI’s potential effect on traditional IT services.
US officials’ rationale
Potential company and sector concerns
Suspension from residency programme
US officials’ rationale
US officials cited alleged fraud and said the government wants companies to hire more American workers.
Potential company and sector concerns
The article says changes to US immigration rules could affect Indian IT companies because the United States is a major market for them.
Key facts
- Infosys ADR
- $10.28, down 2.70%; reached a new 52-week low
- Infosys year-to-date change
- Down 39.68%
- Wipro ADR
- $1.62, down 2.99%
- Infosys revenue forecast
- 1.5%-3% growth in constant-currency terms; -0.2%-1.3% after adjusting for mergers and acquisitions
- TCS annualised AI revenue
- $3.1 billion in the September quarter, up from $2.6 billion in the previous quarter
- TCS consolidated revenue
- Rs 731.88 billion, up 11.2% year over year
- US market snapshot
- S&P 500 down 0.2%; Nasdaq Composite down 0.4%; Dow Jones Industrial Average up 4 points
- Brent crude
- Up 4.6% to $104.77 a barrel
Quotes
JD Vance
US Vice President
“Our message to Microsoft is: You’re a great American company, but you’ve got to hire great American workers.”
financialexpress.com
Sources
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