The US Labour Department is grilling the duo for possible H1-B violation, say reports.
There are concerns that visa quota for these companies may get affected if violations are
established during investigations. It may also lead to rise in legal costs for the Indian
companies.According to industry experts, the traders are over-reacting to investigation reports.
"North America is a big market for TCS but visa violation issue is unlikely to impact earnings for FY16 in a big way. Clarity from management may allay concerns," said Avinnash Gorakssakar, CIO and Head Research at Precision Investment Services.Sarabjit Kour Nangra, VP Research (IT) at
Angel Broking, said, "This development is in the normal course of business and hence, we believe that it won't have major impact on the business dynamics. Currently, it does not involve any financial implications. Thus we maintain a BUY on both the stocks Infosys and TCS with a price target of Rs 2630 and Rs 3168 respectively," said.
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