Indian IT stocks lose Rs 55,000 crore as US suspends Cognizant PERM filings
A major market decline hit Indian technology firms after the US Department of Labour halted Cognizant's green card sponsorship process amid fraud investigations.
Indian IT stocks fell sharply in value on Tuesday, dropping a combined Rs 55,000 crore. Infosys led the downturn with losses exceeding 3%, while Tech Mahindra, HCL Technologies, and Persistent Systems each declined roughly that same percentage. TCS, Mphasis, Wipro, and LTIMindtree also saw declines around 2%. This sharp sell-off followed the decision by the US Department of Labour to suspend Cognizant's Permanent Labour Certification filings. The PERM program is a standard method for employers in India to sponsor foreign nationals for permanent residency and employment-based green cards. Anthony D'Esposito, the inspector general at the US Department of Labour, announced the suspension via social media. He stated that threats to American workers would not be tolerated while authorities investigated alleged fraud and financial harm. D'Esposito noted that handcuffs awaited those found guilty of such conduct.
