Birlasoft's shares surged over 10.5% on October 23, marking the largest single-day jump since May 2021. Indian IT companies received relief after the US administration clarified H-1B visa rules. The share price surpassed key technical levels, reaching a high of ₹388.
Birlasoft Share: Birlasoft Limited shares soared over 10.5% on October 23, reaching ₹388.20, which is the largest single-day return since May 2021. This surge followed clarifications from the US administration regarding H-1B visa rules, bringing relief to Indian IT companies. The share price has now crossed its 50-day and 100-day moving averages, positioning itself above key technical levels, and the company's market cap has exceeded ₹10,600 crore.
October Likely to Be a Month of Gains
If this upward trend in shares continues, October could prove to be the first profitable month for Birlasoft after three consecutive months of decline. However, the share price has fallen by 36% over the past year. As of the end of September 2025, the company's promoters held a 40.53% stake.
Reason for the Surge in IT Shares
The primary reason for the rally in Birlasoft and other IT shares is the clarification from the US administration regarding H-1B visa rules. The Donald Trump administration has announced that the $100,000 fee on H-1B visa applications will not apply to F-1 student visa holders, L-1 intra-company transferees, or renewals and extensions for existing H-1B visa holders.
This change in rules has provided relief to Indian IT companies, and investors have perceived it as a positive signal. The changes in H-1B visa rules have strengthened job security for professionals working in the Indian technology and services sector.
Status of H-1B Visa Holders
Currently, approximately 300,000 Indian employees are working in the US on H-1B visas. Most of them are employed in the technology and service sectors. According to US administration data, Indians account for about 70% of new H-1B visa allocations, followed by Chinese nationals with a share of around 11-12%. Following this update, investor expectations in Indian IT companies have increased.
Technical Strength in the Share
Birlasoft's share appears technically b. After surpassing the 50-day and 100-day moving averages, a new buying trend has emerged for the share. Investors believe that if this momentum continues, the share could reach new highs in the coming weeks.
Impact on the IT Sector
The changes in H-1B visa rules have impacted not only Birlasoft but the entire Indian IT sector. Other IT companies' shares also saw a surge. Investors viewed this as a positive policy from the US administration and a sign of demand for Indian professionals.
Investor Enthusiasm
Investor enthusiasm has also been fueled by the expectation that the stability of Indian professionals working in the US market will be maintained in the long term. Concurrently, the likelihood of new projects and contracts for companies has increased. Consequently, investors rapidly bought Birlasoft shares, and the stock set a new record in day trading.
Experts believe that the changes in H-1B visa rules have strengthened the growth prospects for Birlasoft and other IT companies in the coming quarters. If the demand for Indian professionals in the US market remains stable and companies successfully complete their contracts, further upside in the share price can be expected.
