Curbs on H-1B visa will not disrupt Indian IT sector, says Tech Mahindra boss
The Trump administration’s move to restrict work visas will not lead to any disruption for the Indian IT services sector, Tech Mahindra MD and CEO CP Gurnani said in an interview to CNBC-TV18.
Gurnani said the industry had prepared itself for unrealistic immigration challenges, adding that it had become ‘Atmanirbhar’ by not overly depending on H-1B visas .
“We were locally hiring and training a lot more engineers. So India’s own applications for H-1B visas has reduced. The impact on India or on Indian companies will be less in the short-term, it is not going to lead to any disruption,” Gurnani said.
Gurnani said that the US needed Indian IT talent more than the other way round.
“I think the impact on Tech Mahindra is minimal. I think there will be more impact on individuals than on the companies,” said Gurnani.’
At 12:35 pm, the shares traded 1.21 percent to Rs 557.90 per share on the NSE.
Glenmark shares down 7%; market gets realistic about Fabiflu impact on earnings
Glenmark Pharma shares were down over 7 percent during Tuesday’s trading session. The stock had surged as much as 35 percent on Monday after the company was granted fast-track regulatory approval to launch favipiravir in India for treatment of COVID-19 patients with mild to moderate symptoms.
Glenmark’s brand of favipiravir is called Fabiflu.
The stock fell as much as 7.30 percent to Rs 482 per share on the NSE. At 12:15 pm, the shares gave up marginal losses to trade 6 percent lower at Rs 488.50.
Analysts were surprised at Monday’s rally and said that the potential earnings from the sale of Fabiflu did not warrant such a big gain in the stock price.
Brokerage house Axis Capital said that Favipiravir isn’t cleared for use of any kind in the US as the USFDA has in the past rejected it on worries about side effects. Many other pharma companies would be launching similar drug in next 1-2 months (Strides, Cadila, etc); so it is not an exclusive drug for the company, Axis Capital said.
According to brokerages such as IDFC Securities and Bank of America-Merrill Lynch, Fabiflu could net Glenmark anywhere between Rs 25 to 90 crore in revenues.