Impact of H1B Visa Rules on the Two Bellwether IT Services Stocks INFY and TCS

Date: 05-05-2017

On Feb 1, 2017 Trump administration asked for a 60-day freeze on the processing of H1B visas. A major brunt of this decision was felt at once on Indian IT Service providers, Infosys and TCS. These two companies rely a lot on H1B visas to deliver their IT services. Using the Quantmod package and using some ‘R’ script, we wanted to see the impact of the tightening of H1B rules on these two companies stocks. See Quantmod for an understanding of Quantmod package.

Here is the ‘R’ script and the graphic that shows both TCS and INFY stocks losing approximately 10% plus in the last 3 months.

 

#Install the Quantmod Package
install.packages('quantmod')
library (quantmod)
help("quantmod-package")
#Plotting last 3 months data. while trying to understand tightening of H1B visa rules
getSymbols(c("INFY.BO", "TCS.BO"))
#Check the latest stock data for both INFY and TCS to make sure the values look correct
tail(TCS.BO)
tail(INFY.BO)
#Now plot TCS and INFY stock data over last months
chartSeries(c(INFY.BO, TCS.BO), theme = chartTheme('white'), subset='last 3 months')
#Now plot TCS and INFY stock data indvidually to see how both stocks hav asuffered due to tightening of H1b visa!
chartSeries(INFY.BO, theme = chartTheme('white'), subset='last 3 months')
chartSeries(TCS.BO, theme = chartTheme('white'), subset='last 3 months')

Effect of H1B Visa Rules on TCS Stock Effect of H1B Visa Rules on TCS Stock[/caption]

Effect of H1B Visa Rules on INFY Stock

Effect of H1B Visa Rules on INFY Stock[/caption]