Across Asia and beyond, emerging market shares nudged higher as sentiment turned constructive. The move reflected a broad appetite for risk assets, even as headlines out of the United States delivered a disruptive blow to Indian IT firms. The American administration’s decision to raise fees on H-1B visas sent an immediate shock through the sector.
Indian IT companies reacted instantly in the equity market. The sector has heavy reliance on overseas assignments, with the US being the single largest revenue contributor. When news emerged that visa fees would jump, shares of the largest players dropped, dragging the domestic IT index lower.
The timing was notable, as the broader emerging market basket was moving in the opposite direction. Gains in other regions highlighted that the weakness in Indian IT was not part of a generalised sell-off but a sector-specific response.
Market observers are now looking closely at how Indian IT companies adjust. Higher visa costs reduce flexibility in deploying staff overseas, raising questions about whether firms accelerate local hiring or lean harder on offshore delivery.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
