OFSS Shares Plummet 7% Amid Concerns Over Oracle's Data Centre Debt and H-1B Visa Fee
Shares of OFSS plummeted over 7% on Monday, while other top IT stocks including Wipro, Coforge, and Infosys dropped up to 2%. The decline comes amid reports that $18 billion in loans tied to an Oracle-leased data centre in New Mexico has come under pressure. This is due to escalating local opposition to the 'Project Jupiter' campus, which could impact water supply and air quality.
Oracle Financial Services Software (OFSS) is the Indian subsidiary of Oracle. The company's shares fell to Rs 11,061 apiece, making it the top loser on the Nifty IT index, which dropped over half a percent.
The decline in OFSS shares also comes amid concerns about the impact of US President Donald Trump extending the $100,000 fee for employers bringing in foreign workers on H-1B visas by another year. This move has been criticized by many, with some saying it will hurt Indian IT companies that rely heavily on this program.
Goldman Sachs issued a cautious note on Indian IT stocks, stating that demand remains weak despite robust tech spending. It also noted that AI-led deflation could continue for another one to two years.