Markets experienced a significant downturn on Monday, primarily influenced by pressures on IT stocks following the U.S. administration’s decision under President Donald Trump to impose a one-time fee of $100,000 on new H-1B visa applications. The benchmark BSE Sensex dropped by 466.26 points, or 0.56 percent, concluding at 82,159.97. The Nifty 50 also saw a decline, falling 124.70 points, or 0.49 percent, to finish at 25,202.35.
The Nifty IT index faced the steepest decline, plunging 2.95 percent. Major IT companies experienced substantial losses amid apprehensions regarding the impact on their business models, which significantly rely on skilled visa workers. Tech Mahindra led the pack of losers, plummeting 3 percent to ₹1,507.20. Tata Consultancy Services fell by 2.96 percent to ₹3,075.50, while Infosys decreased 2.55 percent to ₹1,500.90, and Wipro dropped 2.11 percent to ₹250.49.
“The primary driver for the negative closing was aggressive selling in IT stocks, instigated by the U.S. administration’s decision to impose a hefty $100,000 one-time fee on new H-1B visas,” stated Vaibhav Vidwani, Research Analyst at Bonanza Group. “This policy has unsettled investor sentiment in the IT sector, which depends on such visas for skilled talent, likely compressing margins for leading firms.”
The broader market showed widespread selling, with 2,612 stocks declining compared to 1,688 advances on the BSE. The Nifty Midcap 100 fell by 0.67 percent to 58,699.50, while other broader indices also came under pressure. Market volatility surged, with the India VIX increasing 5.92 percent to close at 10.55, reflecting heightened caution among investors.
Pharmaceutical stocks also faced challenges, with the sector declining 1.41 percent. Cipla dipped 2.14 percent to ₹1,542.00, interrupting a two-session winning streak within the pharmaceutical segment.
Conversely, certain sectors provided some relief from the overall market decline. Adani Enterprises emerged as a top performer, gaining 3.98 percent to ₹2,624.50, buoyed by ongoing investor interest following recent regulatory clarity. Eternal Industries appreciated by 1.60 percent to ₹341.95, while Bajaj Finance rose 1.37 percent to ₹1,006.00. Adani Ports and UltraTech Cement also posted solid gains.
“Adani Group stocks once again outperformed, with sustained buying interest following SEBI’s favorable report,” commented Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth. The energy sector recorded a 0.69 percent gain, while metal and media indices posted modest gains exceeding 0.4 percent each.
The session was marked by high volatility, with the Nifty oscillating between an intraday high of 25,331.70 and a low of 25,151.05. “Despite a weak opening, the market swiftly filled the gap and attempted recovery. However, selling pressure reemerged, pulling the Nifty down to its intraday low, as profit-booking overshadowed the latter half of the session,” noted analysts at Ashika Institutional Equities.
Banking stocks exhibited mixed performance, with the Nifty Bank index declining 0.31 percent to 55,284.75 amid broader market weaknesses, although some individual stocks like Canara Bank and Axis Bank managed to gain.
The Indian rupee depreciated against the dollar, compounding market anxieties. “Adding to the caution, a weaker rupee and a stronger U.S. dollar further dampened sentiment,” remarked Ponmudi R, CEO of Enrich Money.
Commodity markets displayed mixed trends, with metals offering some support to overall market sentiment. Performance in the energy sector was attributed to selective buying in oil and gas stocks amidst global energy dynamics.
Technical analysts underscored key support and resistance levels for the markets. “The 25,000 level remains crucial psychological support, and as long as the Nifty holds above it, a buy-on-dips strategy remains viable,” stated Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking.
Market sentiment remains fragile, with analysts from Kotak Securities indicating, “As long as the market trades above 25,300/82,500, weak sentiment is likely to persist. On the downside, it could slip to 25,100-25,050/82,000-81,700.”
The market’s decline occurred despite positive domestic developments, including the rationalization of GST, which merges four tax slabs into two—5 percent and 18 percent, alongside a new 40 percent slab for “sin goods.” Analysts are optimistic this move will stimulate consumption across various sectors from automotive to fast-moving consumer goods (FMCG).
Foreign institutional investor flows remained cautious, although domestic investors continued their steady support. “Steady inflows from domestic investors and positive growth indicators continue to provide a supportive backdrop, although foreign inflows remain cautious,” observed market participants.
Looking ahead, market observers will keenly monitor developments surrounding Commerce Minister Piyush Goyal’s visit to the U.S. for trade negotiations—the first since the imposition of higher tariffs by the Trump administration. “Following the recent rally, equities are expected to consolidate, tracking developments on this front,” remarked Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services. The focus will remain on any potential policy clarifications regarding the H-1B visa fee structure and its long-term implications for India’s IT outsourcing industry.
Published on September 22, 2025.
