Sensex Ends Lower; IT Stocks Slump 2.4% On Worries Over H-1B Visas

The Indian share markets finished the week marginally lower. At the closing bell, the BSE Sensex closed lower by 119 points, whereas the NSE Nifty finished lower by 30 points. The S&P BSE Midcap ended down by 0.3% while the S&P BSE Small Cap finished down by 0.4%. Sectoral indices ended the day on a negative note with only bankinghealthcaremetal stocks in green.

Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.21%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.35% and 0.34% respectively. European markets are lower today with shares in France off the most. The CAC 40 is down 0.31% while Germany's DAX is off 0.25% and London's FTSE 100 is lower by 0.07%.

The rupee was trading at Rs 68.18 against the US$ in the afternoon session. Oil prices were trading at US$ 53.96 at the time of writing.

S&P BSE IT Index ended the day down by 2.4% after it was reported that two US Congressmen have reintroduced a bill to curb the use of H-1B visas, on which the Indian IT sector is particularly dependent. Meanwhile, according to an article in The Financial ExpressTech Mahindra has announced joint venture with Saudi Arabia-based Midad Holdings, a part of diversified business conglomerate Al Fozan Group. Tech Mahindra will have a majority ownership of the JV named Tech Mahindra Arabia, which will focus on opportunities in Saudi Arabia.

The decision to set up a local joint venture company aligns very well with Tech Mahindra's vision of offering localized technology solutions by building a strong local presence and thus contributing to the local economy. Al Fozan Group has a presence retail, manufacturing, real estate and trading activities.

One must note that, Tech Mahindra has been present in Saudi Arabia since 2006 and has over 1,600 employees catering diverse set of clients. The company has made several acquisitions in this segment to enhance its presence across the value chain and expand its footprint globally. What is more commendable, in spite of multiple acquisitions, the company has been able to maintain its debt to equity ratio at very low levels.

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