Infosys, Wipro ADRs drop as US suspends firms from PERM
In short
Infosys and Wipro ADRs fell about 3% in US trading on Thursday, October 8. The US Department of Labour suspended Infosys, TCS, Wipro, HCL Technologies, Cognizant and Capgemini from the Permanent Labour Certification programme.
That programme helps companies seek green cards for H-1B workers. The market moved lower right away, but it is not stated how long the suspension will last or what the companies will do next.
What the reporting says
Infosys and Wipro ADRs fell about 3% in US trading after the US Department of Labour suspended Infosys, TCS, Wipro, HCL Technologies, Cognizant and Capgemini from the Permanent Labour Certification programme. The reporting also says the action affects a programme used by companies seeking green cards for H-1B workers. The immediate consequence was pressure on Indian IT shares, while the report does not state how long the suspension will last.
Why it matters
US labour authorities suspended several large IT services firms, including Infosys, TCS, Wipro, HCL Technologies, Cognizant and Capgemini, from the PERM programme used for employment-based immigration cases. ADRs for Infosys and Wipro fell about 3%, with Wipro quoted at $1.63 and Infosys at $10.27 in the reported trading. The source does not explain the reason for the suspension or its duration.