IT stocks closed flat on Tuesday despite strong gains in broader markets. The BSE IT index, which comprises 12 tech stocks, including frontliners such as Tata Consultancy Services and Infosys, rose 0.27 per cent as compared to over 1.1 per cent gains in the BSE Sensex.
IT stocks have seen sustained buying over the last five days, but news that Canada has tightened visa norms hit sentiments in IT stocks on Tuesday.
Canada has suspended the Accelerated Visa Program, which reduced processing time for visas to two weeks. The processing time for visas is likely to go up to three-five months now, and the there is a proposal to increase visa fees as well.
The impact, however, is seen as sentimental because Canada forms a small part of IT revenues that Indian companies earn outside India.
Wipro, India's third largest outsourcer was the top loser on the BSE IT benchmark. The stock shed 1.5 per cent to close at Rs 351.70. Infosys shares gained 0.3 per cent to Rs 2,348.60, while TCS edged up 0.3 per cent to Rs 1469.
Meanwhile, Tuesday is the last date for filing amendments to draft U.S. Immigration Bill. The Bill seeks to put curbs on the use of H-1B visa for those companies which have a higher ratio of work force under this category.
The Bill is likely to be placed for a vote in Senate towards the end of May.
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