New Delhi [India], September 22 (ANI): Indian stock markets opened lower on Monday as volatility increased after the Trump administration in the US announced significant changes in the H-1B visa policy.
The move has created uncertainty for India’s IT sector, which is heavily dependent on the US for business and deployment of professionals.
The Nifty 50 index opened at 25,238.10, down 88.95 points or 0.35 per cent, while the BSE Sensex started the day at 82,138.99, slipping 487.24 points or 0.59 per cent.
The pressure was most visible in IT stocks, with the Nifty IT index declining by more than 3 per cent in early trade. Shares of TCS, Infosys, Wipro, and HCL Tech witnessed sharp selling pressure.
Devarsh Vakil, Head of Prime Research at HDFC Securities, said the Trump administration has introduced significant changes to the H-1B visa program.
“A new executive order imposes a USD 100,000 application fee for each new H-1B visa. The fee is applicable only for new applicants and will not affect renewals or current H-1B holders. This sudden fee hike has sparked confusion and panic among tech companies and international workers, particularly those from India, which accounts for over 70 per cent of H-1B beneficiaries. Costs of deploying Indian professionals to US client sites for new projects will surge, making on-site assignments less financially viable for many companies,” he said.
On Sunday, Prime Minister Narendra Modi highlighted in his address to the nation that next-generation GST reforms would come into effect from today.
He said the new GST structure aims to benefit all citizens during the festive season by increasing savings and making everyday items more affordable.
Despite the weak opening, experts said technical indicators remain positive.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, noted, “Technically, the index (Nifty 50) is trading above all its key moving averages and is currently hovering near the 25,600 resistance level. A breakout above this point would indicate a continuation of the uptrend. The Nifty 50 performed well last week, surging by 213 points and nearly recovering from a recent sharp fall with three consecutive bullish candles. Monday’s stock market performance will be heavily influenced by how Indian IT companies react to the Trump Administration’s H-1B visa announcements.”
In the broader market indices on NSE, Nifty 100, Nifty Midcap 100, and Nifty Smallcap 100 all traded lower as selling pressure mounted.
Among sectoral indices, Nifty Auto was trading marginally higher, supported by the GST reforms, along with FMCG and Media, while other major sectors, including pharma, remained under pressure.
Meanwhile, safe-haven buying lifted precious metals.
Manav Modi, Analyst, Precious Metals-Research at Motilal Oswal Financial Services, said, “Gold hovered near a record high today in the early morning trade on the back of a surge in geo-political tensions and also as investors braced for a slew of speeches from U.S. Federal Reserve officials and inflation data this week, after the central bank cut interest rates last week and signaled potential further easing. Gold breaches the door of USD 3700 once again while silver goes way past USD 43 on COMEX.” (ANI)
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