Infosys is trading higher by 3.4% at Rs 1,095 on the NSE in early morning trade after the U.S. Labour Department has cleared information technology (IT) major of any wrongdoing and closed its investigation.
The US government has found no visa violations by IT major Infosys. The US had initiated investigation against Infosys and its rival Tata Consultancy Services for possible violations of H1-B visa rules in June 2015.
The investigation came on the back of a complaint by two US Senators, who alleged that the two companies used a US visa programme to “replace hundreds of American workers” at a power company. Indian outsourcers are among the biggest recipients H-1B visas, which are intended for highly skilled workers.
“Infosys is pleased to report that the US Department of Labor concluded its investigation with a determination of compliance regarding labour condition applications filed in the Southern California Edison project,” Infosys said in a statement issued on Tuesday.
Sarabjit Kour Nangra, VP Research – IT & Pharma, Angel Broking, maintains ‘BUY’ rating on the stock with a price target of Rs 1,306 and remains positive on the IT space.
The stock opened at Rs 1,087 and touched high of Rs 1,100 on the NSE. A combined 680,000 shares changed hands on the counter on the NSE and BSE.