Markets extended their losing streak for a fifth consecutive session on Thursday, as the Nifty 50 fell below the significant psychological threshold of 25,000 due to ongoing foreign institutional investor (FII) selling and concerns over US H-1B visa fee increases. The Sensex dropped by 555.95 points, or 0.68 percent, closing at 81,159.68, while the Nifty 50 decreased by 166.05 points, or 0.66 percent, to close at 24,890.85. The market exhibited broad weakness, with 2,709 stocks declining compared to 1,474 advancing on the BSE.
“The Indian stock market closed sharply lower; the Sensex fell by approximately 555 points and the Nifty fell below the 24,900 mark,” stated Vaibhav Vidwani, Research Analyst at Bonanza Group. “Ongoing foreign institutional selling, weak global cues, and heightened concerns regarding US visa restrictions, particularly the proposed $100,000 H-1B visa application fee, significantly impacted investor sentiment.”
US H-1B Visa Concerns
The proposed increase in H-1B visa fees became a critical concern for information technology (IT) stocks, which faced substantial declines. “IT stocks bore the brunt of the sell-off, with the Nifty IT index plummeting over 6 percent this week in response to visa concerns,” noted Hariprasad K, SEBI-registered Research Analyst and Founder at Livelong Wealth. “Key IT players like Infosys, TCS, Wipro, and HCL Tech traded substantially in the red on Thursday.”
Among the top losers on the Nifty 50, Trent led the decline, falling 3.61 percent to ₹4,720.00. Power Grid Corporation tumbled 3.10 percent to ₹284.20, while Tata Motors slipped 2.64 percent to ₹664.90. TCS, regarded as an IT bellwether, fell 2.55 percent to ₹2,958.00, and Asian Paints dropped 2.17 percent to ₹2,404.00.
However, a few stocks managed to counter the prevailing trend. Bharat Electronics Limited emerged as the top gainer, increasing by 2.07 percent to ₹403.65. Hero MotoCorp rose by 1.51 percent to ₹5,356.50, while Hindalco gained 0.80 percent to ₹747.00. ONGC added 0.49 percent to ₹239.70, and Axis Bank closed 0.35 percent higher at ₹1,163.00.
“The Nifty slipping below the psychological 25,000 mark today deepens its bearish streak, as various global and domestic headwinds rattle investor confidence,” stated Hariprasad K. “Ongoing FII outflows, a record-low rupee, and renewed concerns over the US H-1B visa fee hike—seen as a burden on Indian IT earnings—have all contributed to souring sentiment.”
The volatility index, India VIX, surged nearly 9 percent over the past five sessions, indicating increasing anxiety among market participants.
Weak Market Breadth
Market breadth remained weak across sectors, with the Nifty Next 50 falling by 0.75 percent to 68,293.65, and the Nifty Midcap 100 declining by 0.64 percent to 57,555.90. Sectoral performance exhibited widespread weakness, with all major indices ending in negative territory, except for metals. “Sectorally, most indices closed in red, with Realty and IT stocks leading the declines. Metals was the sole gainer, up 0.22 percent, supported by strong rallies in Hindustan Copper, Vedanta, Hindalco, and Hindustan Zinc,” reported Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
Banking stocks also faced pressure, with the Bank Nifty slipping 0.26 percent to 54,976.20, although it showed relative resilience compared to the broader market. “The Bank Nifty remained weak, dropping below 55,000 as private banks experienced pressure, while PSU banks provided some support,” noted Ponmudi R, CEO of Enrich Money.
Technical analysts emphasized significant support and resistance levels for the market. “The Nifty has fallen below the key support level of 25,050, which aligns with the 38.20 percent Fibonacci retracement of the previous rise from 24,400 to 25,450,” said Rupak De, Senior Technical Analyst at LKP Securities. “Immediate support is positioned at 24,800; a break below this level may trigger a more serious correction.”
Foreign institutional investors continued to liquidate their holdings, with outflows nearing ₹9,000 crore recorded this week. “Sentiment remained weak as selling by foreign investors intensified, with shares worth nearly ₹9,000 crore offloaded so far,” noted Prashanth Tapse, Senior VP at Mehta Equities.
Currency and Commodity Performance
The rupee experienced pressure but managed slight gains, trading up by 0.06 paise at 88.67 against the dollar. “The rupee increased by 0.06 rs to 88.67, while the dollar index remained flat. Despite these marginal gains, persistent FII selling kept the overall sentiment negative,” stated Jateen Trivedi, VP Research Analyst at LKP Securities.
In commodities, gold maintained its bullish trend, gaining ₹600 to reach ₹113,145 on the MCX. “Gold remained positive, gaining $22 to $3,757 on COMEX and ₹600 to ₹113,145 on MCX, reinforcing the strong bullish sentiment,” added Trivedi. Copper futures hit a record high of ₹963.45 per kg amid global supply concerns following a significant supply disruption at a large Indonesian mine.
Market participants exercised caution ahead of key US economic indicators, including GDP data and initial jobless claims, with the PCE price index set for release on Friday. “We expect markets to remain under pressure in the near term, influenced by global headwinds, macroeconomic data releases, and developments surrounding the India–U.S. trade talks,” indicated Khemka.
Looking forward, analysts anticipate continued volatility as the monthly F&O expiry approaches next week. “A short-covering rally may be possible if the Nifty manages to reclaim the 25,000 mark,” stated Nilesh Jain, Head of Technical Research at Centrum Broking. However, technical indicators suggest caution, with immediate support identified at 24,800-24,850 levels and resistance in the 25,000-25,200 range.
Published on September 25, 2025.
