MUMBAI: Technology bigwigs took a beating on the bourses on Friday, with Tata Consultancy Services dropping almost 4% after a shuffle in its management eclipsed optimism surrounding thirdquarter results and Infosys falling 2.5% as investors focused more on its trimmed guidance than better-than-expected earnings.The BSE’s IT Index fell 1.9%, even as benchmark Sensex stayed unchanged. TCS was the biggest loser in the technology pack as investors fretted about the nearterm outlook of the company after Chief Executive N Chandrasekaran’s elevation as the chairman of Tata Sons . The company’s finance chief Rajesh Gopinathan is set to become its new head.“Major management changes with current CEO being elevated to group chairman and replaced by current CFO overshadowed the results and could keep the stock under pressure until growth and margins improve,” Jefferies’ analysts Vaibhav Dhasmana and Atul Goyal wrote in a note to clients.Indian technology blue chips such as TCS and Infosys have struggled on the bourses in recent months as economic uncertainties in the US and Europe, their biggest markets, made business prospects hazy. More recently, concerns over changes in the visa regime in the wake of Donald Trump’s election as the US President has damped sentiment further. In 2016, TCS shares fell 8.4% and Infosys declined 2.3%, as against a 7.7% fall in the IT index and a 1.8% gain in the Sensex.Negative commentary from TCS after its Q3 results about changes in the US visa regime also dragged down shares on Friday. “I believe there will be US visa and regulatory changes — whether the rise in the visa fee or in the number of visas we get. Last year we decided to operate in a visaconstrained regime and we have made those changes,” Chandrasekaran said in the post-results press conference on Thursday.A bill called Protect and Grow American Jobs Act was reintroduced in the US Congress this month, even before Donald Trump, a vocal opponent of outsourcing, takes charge. It seeks to raise salary benchmark for H-1B visa holders to $100,000 a year from $60,000, while scrapping the exemption for applicants holding a master’s degree.“The US H-1B visa issue and what the new administration in the US will do will remain an overhang on the sector,” said Sanjiv Bhasin, executive vice-president for market and corporate affairs at brokerage firm IIFL. Bhasin recommends buying TCS, HCL Technologies and Mindtree on further declines. Industry experts said though Chandrasekaran’s exit was negative for TCS stock, it would continue to benefit from his strategic nous given he will remain on its board.“TCS is a predictable, well-planned company. The challenges are not new,” Dinesh Goel, India head for IT advisory firm ISG, told ET. “I am sure Chandra has laid out a plan and he will be available for guidance.”The first questions Gopinathan is set to face will be on acquisitions. Rivals such as Accenture have spent over $1 billion to buy niche technology firms to get an edge in the digital business. The US multinational is growing its digital business at over 30% a year, roughly the same pace as TCS but over a far larger base. TCS has so far built digital business organically. Analysts have said that may have to change.“TCS has demonstrated the benefits of navigating a steady ship with resilience to face external challenges in the macroeconomic environment. The market would expect greater clarity on its strategy for a few smart acquisitions that would complement its image of being an organisation that takes well-considered (albeit slower) decisions,” said Sanjoy Sen, doctoral research scholar at Aston Business School in the UK.