Infosys, Wipro ADRs Fall 3% as US Tightens H-1B and Green Card Rules

American Depositary Receipts (ADRs) of Infosys and Wipro fell nearly 3% in US trading on October 8 after the US government suspended several major technology companies from the Permanent Labor Certification, or PERM, programme. The move intensified concerns among investors about the impact of tighter US immigration rules on Indian IT companies that rely on skilled foreign workers.

Infosys ADR was trading at $10.26, down 2.8%, at around 9 p.m. IST, while Wipro ADR was at $1.63, down 2.5%, according to Moneycontrol. The sell-off came after US Labor Secretary Keith Sonderling announced that Infosys, Wipro, Tata, Cognizant, HCL and Capgemini were among the companies suspended from the PERM programme, alongside Microsoft and Adobe.

Infosys, Wipro ADRs Fall After US Government Action

The immediate market reaction reflects investor concerns about increasing regulatory scrutiny of Indian IT companies operating in the US.

Company	US-listed security	October 8 move
Infosys	ADR	Down 2.8%
Wipro	ADR	Down 2.5%
Cognizant	Nasdaq-listed shares	Under pressure
Microsoft	US shares	Relatively limited immediate impact

The declines came after the US Department of Labor said it would not accept new or process pending PERM labor-certification applications involving the suspended companies.

The announcement was made at a White House event where Vice President JD Vance criticized Microsoft over its use of foreign-worker programmes and called for greater hiring of American workers.

What Is the PERM Programme?

PERM stands for Permanent Labor Certification.

It is an important step in the US employment-based immigration process. Employers generally use the programme to obtain labor certification from the Department of Labor before proceeding with many employment-based green-card applications.

Under the PERM process, employers are required to demonstrate that there is no qualified, willing and available US worker for a particular position under the applicable requirements.

The latest action therefore has an important distinction: the suspension is focused on the permanent-residency process and does not automatically cancel the H-1B visas of employees working for these companies.

Existing H-1B workers should not interpret the announcement as an immediate termination of their US work authorization.

Why Infosys and Wipro Are Affected

Infosys and Wipro are among India’s largest IT-services companies and have substantial US operations.

Their business models involve providing technology consulting, software development, engineering and other services to US customers. Access to skilled technology professionals, including workers with H-1B visas, has historically been an important part of the industry’s cross-border staffing model.

The Labor Department’s decision means the companies face additional restrictions when seeking labor certification for affected foreign employees. It also increases uncertainty for workers who are progressing through employer-sponsored green-card processes.

The announcement specifically named Infosys and Wipro among the firms suspended from the programme. It also included Cognizant, Tata, HCL and Capgemini.

US Says Action Is Linked to H-1B System Concerns

The Trump administration has been increasing scrutiny of the H-1B programme and related immigration pathways.

Vance said the H-1B system was intended to allow companies to recruit highly skilled foreign workers for positions that could not be filled by American workers. He has argued that the system should not be used to replace US employees.

The administration’s latest action follows broader measures aimed at tightening restrictions on foreign-worker programmes.

The US government has previously argued that certain employers, particularly IT staffing and outsourcing companies, have used the H-1B programme in ways that can displace American workers or put downward pressure on wages. The White House has extended restrictions on the entry of certain H-1B workers through September 2027, including a $100,000 payment requirement for covered petitions, subject to exceptions.

Indian IT Stocks Face a New Risk

For investors, the issue is not necessarily the immediate financial impact of the PERM suspension. Instead, the bigger concern is whether today’s action becomes part of a broader regulatory trend affecting the way Indian IT companies recruit, transfer and retain employees in the US.

The United States is one of the most important markets for Indian IT companies. Any restrictions that make it more difficult or expensive to deploy skilled workers could potentially affect hiring models, employee mobility and operating costs.

However, the precise financial impact remains uncertain.

A PERM suspension does not mean that Infosys or Wipro will suddenly lose their existing US workforce. Nor does it automatically prevent the companies from continuing to serve US clients.

H-1B and PERM Are Different

The distinction between H-1B visas and PERM is particularly important for investors and employees.

Programme	Purpose	Latest action
H-1B	Temporary employment in specialty occupations	Broader US restrictions and scrutiny
PERM	Labor certification for many employment-based green-card cases	Suspended for named companies
Green card	Permanent US residency	Affected cases may face delays depending on stage

The current announcement specifically concerns PERM applications involving the suspended companies. The Department of Labor said it would not accept new applications or process pending permanent labor-certification applications involving them.

That means employees who already have an approved labor certification or have progressed further in the green-card process may be in a different position from workers whose employers have not yet begun the PERM stage.

Why This Matters Particularly for Indian Workers

Indian professionals make up a very large share of the H-1B workforce.

The Indian Express reported that nearly three-quarters of H-1B approvals go to workers from India, making US immigration policy particularly important for India’s technology sector and its professionals working in America.

The latest development could therefore affect a large pool of Indian technology workers seeking permanent residency through their employers.

For companies such as Infosys and Wipro, this could make long-term employee immigration planning more complicated.

Could It Increase Costs for IT Companies?

If immigration restrictions become broader or remain in place for an extended period, Indian IT companies could potentially face higher staffing and compliance costs.

Companies may have greater incentives to hire more workers directly in the US, expand local graduate recruitment or increase the use of employees based outside the country.

That would not necessarily eliminate the need for international talent, but it could change how companies structure their US workforce.

The US administration has explicitly linked its immigration policies to encouraging domestic employment. The latest PERM action indicates that immigration compliance is becoming a more important consideration for large technology employers.

Investors Will Watch for Further US Actions

The market reaction could remain sensitive to additional announcements from US authorities.

The latest action involves several major IT-services companies simultaneously, suggesting that the regulatory focus extends beyond a single corporate investigation. The Labor Department also said it was investigating Microsoft and Adobe separately because of active federal investigations.

The government has also announced investigations involving nine US universities over alleged misuse of the J-1 visa programme, indicating that scrutiny of foreign-worker and foreign-student programmes is expanding across multiple sectors.

What It Means for Infosys and Wipro Investors

For shareholders, the immediate decline in ADRs reflects uncertainty rather than evidence of a direct earnings hit from the PERM suspension.

Both companies continue to have large US businesses and established client relationships. The bigger question is whether tighter immigration rules eventually affect their ability to deploy talent efficiently and competitively.

Investors will therefore be watching US immigration policy alongside traditional factors such as IT spending, deal wins, artificial intelligence demand, margins and currency movements.

The Bigger Picture

The decline in Infosys and Wipro ADRs shows how closely Indian IT companies remain linked to US immigration policy. While technology companies can increasingly hire locally or deliver services remotely, skilled-worker mobility remains an important part of global IT-services operations.

The latest PERM suspension adds another layer of regulatory uncertainty. The direct impact on existing H-1B employees is limited because PERM and H-1B are separate parts of the immigration system, but delays in the permanent-residency pathway could affect employee retention and long-term workforce planning.

Looking Ahead

The next major issue for investors will be whether the US government expands the restrictions beyond the current PERM action or provides additional guidance on pending applications. Any broader restrictions affecting H-1B transfers, extensions or new approvals could have a more direct operational impact on Indian IT companies.

For now, the market reaction remains focused on regulatory risk. Infosys and Wipro’s ADR declines highlight investor sensitivity to US immigration policy, but the longer-term financial impact will depend on how long the PERM suspensions last and whether further measures are introduced.