Indian stock markets opened lower on Monday as volatility spiked following the Trump administration’s announcement of significant changes to the H-1B visa policy in the US.
The move has created uncertainty for India’s IT sector, which relies heavily 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 at 82,138.99, slipping 487.24 points or 0.59 per cent.
IT stocks bore the brunt of the pressure, with the Nifty IT index declining more than 3 per cent in early trade. Shares of TCS, Infosys, Wipro, and HCL Tech faced sharp selling.
Devarsh Vakil, Head of Prime Research at HDFC Securities, said the US executive order imposes a USD 100,000 application fee for each new H-1B visa. “The fee applies only to new applicants and not to renewals or current H-1B holders. This sudden fee hike has sparked confusion and panic among tech companies and international workers, particularly 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 rise, making on-site assignments less financially viable for many companies,” he explained.
Meanwhile, domestic developments offered some support. On Sunday, Prime Minister Narendra Modi highlighted that next-generation GST reforms would come into effect from Monday. The new GST structure aims to increase savings for citizens and make everyday items more affordable during the festive season.
Despite the weak opening, technical indicators remain positive. Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, noted, “Technically, the Nifty 50 is trading above all key moving averages and is near the 25,600 resistance level. A breakout above this point would indicate continuation of the uptrend. Monday’s performance will largely depend on how Indian IT companies respond to the US H-1B visa changes.”
Broader indices, including Nifty 100, Nifty Midcap 100, and Nifty Smallcap 100, also traded lower as selling pressure mounted. Sectoral indices showed mixed trends, with Nifty Auto, FMCG, and Media trading marginally higher, supported by GST reforms, while pharma and other major sectors remained under pressure.
Safe-haven buying lifted precious metals. Manav Modi, Analyst, Precious Metals-Research at Motilal Oswal Financial Services, said, “Gold hovered near record highs in early trade due to rising geopolitical tensions and in anticipation of US Federal Reserve speeches and upcoming inflation data. Gold breached USD 3,700 again, while silver rose past USD 43 on COMEX.”
-ANI