Motilal Oswal Report: The Indian IT sector is facing one of its biggest challenges in recent times following the US government’s sharp increase in the H-1B visa application fee to $100,000. This unprecedented hike reduce investor confidence and caused a sell-off in IT stocks. Today Nifty IT index down by nearly 3% in intra-day trading session. Several leading IT stocks, including Mphasis, Persistent Systems, Coforge, Tech Mahindra, and larger players like TCS, Infosys, HCL Technologies, and Wipro, saw notable price declines of 1% to 4%.
In this uncertain environment, Motilal Oswal, one of India’s respected brokerage firms, has shared its latest insights along with its top 4 IT stock picks. These selections are companies that they believe are well-positioned to navigate the current challenges and continue delivering value to investors.
The H-1B Visa Fee Hike and Its Impact
The United States has increased the one-time fee for H-1B visa applications from around $1,000 to a staggering $100,000. This fee hike is part of a tightening immigration framework and is expected to affect visa petitions filed starting FY27.
Earlier, the visa cost was a relatively minor administrative expense. Now, with the fee matching an average annual salary for H-1B visa holders.
However, Indian IT firms have already been strategically reducing their dependence on H-1B visas over the past decade. Currently, only about 3-5% of the active workforce at a typical Indian IT firm is on H-1B visas.
Most companies have shifted to local hiring in the US and expanding offshore delivery models to mitigate visa related risks.
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Motilal Oswal’s Top 4 IT Stock Picks
Motilal Oswal remains positive about four IT companies that they believe can handle current challenges well.
HCL Technologies (HCL Tech)
The brokerage firm Motilal Oswal’s maintains a positive view on HCL Technologies, seen as a dependable choice for any market condition. Its diverse business across several sectors and consistent performance make it strong even during tough times.
Tech Mahindra
The brokerage is positive on Tech Mahindra shows, Company show early signs of improvement under new leadership. The company is doing better in the banking and financial services area (BFSI), with more realistic profit expectations and services that are gaining popularity among clients.
Coforge
Coforge stands out in the mid-sized company group by winning big contracts. Its recent deal with Sabre highlights how these mid-level companies can grow and offer cost-effective solutions. Past market downturns have shown that mid-sized IT firms like Coforge can succeed even when cost-cutting is a priority.
Hexaware Technologies
In latest Motilal Oswal’s IT Stocks picks include Hexaware company beacuse of company growing steadily by focusing on consolidations in the financial services sector. As pressure on big accounts decreases, its profit margins are improving. The company is gaining more business through mergers and acquisitions in this sector.
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Impact of H-1B Visa Fee Hike
The direct impact on Indian IT earnings is expected to be manageable. Less than 5% of the active workforce is H-1B visa-dependent limiting negative effects on profits. The true hit may come in higher onsite wage inflation and some delay in US contract negotiations, but firms have time to adapt through increased local hiring and contract renegotiation.
Latest Share Price Details
Monday, 22nd September 2025 NSE Closing Data
| Stock | Stock Price | YTD Return | H-1B Dependency (%) |
| HCL Technologies | 1,442.00 | -24.39% | 3-5% |
| Tech Mahindra | 1,507.20 | -11.54% | 3-5% |
| Coforge | 1,715.30 | -10.93% | 3-5% |
| Hexaware | 727 | -4.66% | 3-5% |
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