💻 Infosys Tanks, the $100K H-1B Shock Hits IT 🚨

👋 Morning Chai Crew!

It’s only Tuesday but the market already feels like Friday 🤯 — one proclamation from Trump and India’s IT stocks got whacked harder than a cricket ball in the slog overs. Let’s break down why the Street is nervous and who’s cheering on the sidelines.

🌟 Chai Shots

• 💻 Infosys tanks on Trump’s H-1B bomb: Infosys shares dropped nearly 4.5% after news broke that Trump plans to impose a $100,000 fee on H-1B visas. Cognizant and Accenture also tumbled, with analysts warning this move could upend outsourcing models that rely on Indian tech talent. More in the Big Brew 👇

• 🚕 Evera eyes BluSmart’s EV fleet: Delhi-based Evera Cabs has offered to lease 1,000 EVs from bankrupt rival BluSmart. The move builds on the 500 EVs it already absorbed earlier this year, signaling its push to expand hourly rentals and strengthen its foothold in Delhi-NCR.

• 🦄 Tide hits unicorn status with India power: UK fintech Tide raised $120M led by TPG, valuing it at $1.5B. More than half its 1.6M members are in India, where the startup has onboarded over 800,000 small businesses since 2022, making it its fastest-growing market.

• 🪙 Crypto meltdown deepens: Bitcoin −3%, Ether −6%, Solana −7% as $1.7B leveraged positions were liquidated overnight. Treasury firms like MicroStrategy peers also faced heat; merger activity has begun in the space.

📊 Market Masala

• 📉 Markets bleed as IT drags: The Sensex shed 466 points to close at 82,323, while Nifty slipped 125 points to finish at 25,202. IT was the biggest laggard — Nifty IT sank 3% — as the visa shock triggered profit-booking across large-cap tech stocks.

• 📉 IT stocks take a beating: Nifty IT lost ₹82,600 crore in value on Monday, with Mphasis, LTIMindtree, and Coforge falling 4–5%. TCS, Infosys, and Wipro were also dragged down 2–3%. Analysts warn visa costs could compress margins by up to 200 bps over the medium term.

• 📊 Broader market mixed: Select banks like Axis Bank and Canara Bank cushioned losses, but autos and FMCG dragged. India VIX jumped nearly 6% to 10.55, signaling rising volatility.

• 🏢 Purple Style Labs preps ₹660 Cr IPO: The parent of Pernia’s Pop-Up Shop filed for a ₹660 crore IPO with SEBI. Proceeds will fuel expansion of luxury experience centers, strengthen backend supply chains, and enhance its omnichannel strategy.

• 🚗 Navratri car sales zoom: Auto dealers reported huge Navratri footfalls, with CARS24 seeing a 400% jump in deliveries. GST-linked price cuts and festive demand could keep momentum strong.

🌍 Global Masala

• 📈 Wall Street steady after rocky start: US indices turned positive — S&P 500 up 0.2%, Nasdaq up 0.3% — as traders awaited Fed speeches and the PCE inflation print for rate-cut signals.

• 🪙 Gold at record highs, crypto crashes: Gold crossed $3,750/oz on safe-haven demand, while bitcoin fell 3% and ether 6% after $1.7B of bullish positions were liquidated overnight.

• 💊 Pfizer bulks up with $7.3B obesity deal: Pfizer will acquire Metsera to strengthen its GLP-1 weight-loss pipeline. The buyout marks a major bet on the booming obesity drug market.

🍵 The Big Brew — 💻 Trump’s $100K H-1B Visa Fee Shakes India’s IT

A single stroke of the pen from Washington sent shockwaves through India’s tech corridors.

📜 What happened?

• Trump signed a proclamation slapping a $100,000 one-time fee on all new H-1B visa applications.

• Applies to new entrants only, not renewals or existing holders.

• First kicks in with the next lottery cycle; not applicable to 2025 winners.

📉 Market impact

• Infosys −4.5%, Cognizant −4.3%, Accenture −1.3% in US trading.

• In India, Nifty IT fell ~3%, erasing ₹82,600 Cr market cap.

• Brokerages warn of 100–200 bps margin compression, with profits hit by 4–13% if costs are absorbed.

🌍 Global fallout

• Amazon, Microsoft, Meta, Apple, Google — each employing thousands of H-1B holders — scrambled to reassure staff. Some even advised against international travel to avoid status risks.

• India’s MEA called the move disruptive for families; South Korea said it’s reviewing impact on its firms.

• Europe, UK, and Dubai smell opportunity: policymakers are exploring fast-tracks and visa waivers to poach disillusioned tech talent.

🔎 What does this mean?

• 🏢 For IT firms: Potential higher wage bills and onsite staffing challenges; could accelerate offshoring back to India.

• 👨‍💻 For workers: Costlier entry into the US job market; may divert talent flows to Europe/Asia.

• 📈 For investors: Short-term pain in IT valuations; longer term, firms that adapt by building GCCs in India may emerge stronger.

🚀 Startup Scoop

• 👥 All Things People raises ₹7 Cr seed: HR-tech startup ATP raised funding from Varun Alagh and others. Its platform, atp|reflect, helps firms track employee sentiment and is already live with 15 top clients.

• 🏨 EaseMyTrip ups Eco Hotels stake: EaseMyTrip raised its Eco Hotels stake by 7.77% with a ₹15.2 Cr rights issue. The OTA has been diversifying into hospitality but Eco remains at an early stage.

• ✈️ Schroders hikes Ixigo holding: Schroders raised its Ixigo stake to 7.18% after open-market buys. Ixigo’s Q1 FY26 revenue surged 72.5% YoY to ₹314 Cr, with net profit rising to ₹19 Cr.

• 🪑 RentoMojo kicks off IPO prep: Accel-backed RentoMojo hired IIFL and Motilal Oswal for IPO prep by FY27. FY25 profit soared 82% to ₹40 Cr, with EBITDA up 40% YoY.

🧠 Chai Break Trivia

• 🤔 Did you know As of June 2025, Amazon alone employs 14,000+ H-1B workers, while Microsoft, Meta, Apple, and Google each employ 4,000+ — explaining why this fee is shaking global tech.

🔮 What’s Brewing Next

• 🪔 Diwali Muhurat trading confirmed for Oct 21

That’s it for today’s cup — a bitter brew for IT but a potential sugar rush for Europe and Dubai talent hubs. 🍵 As markets digest the $100K visa bombshell, remember: India’s IT sector has seen worse curveballs and bounced back stronger. Catch you tomorrow for the next pour of chai! 🌟