The Indian stock market started the week on a negative note, with benchmark indices declining sharply on Monday. The downturn was triggered by a massive sell-off in information technology (IT) stocks following an unexpected announcement from the United States regarding a steep hike in H-1B visa fees.
The S&P BSE Sensex fell 466.26 points (0.56%) to close at 82,159.97, while the NSE Nifty 50 dropped 124.70 points (0.49%) to settle at 25,202.35. The decline snapped a recent winning streak and introduced significant volatility, with the India VIX index jumping nearly 6%.
Key Market Highlights
-
Sensex: Closed at 82,159.97, down 466 points.
-
Nifty 50: Settled at 25,202.35, losing 125 points.
-
Market Sentiment: A wave of panic selling hit the IT sector, causing a broad-based market decline. The broader markets also felt the pressure, with mid and small-cap indices ending lower.
The Big Story: US H-1B Visa Fee Hike Jolts IT Sector
The primary trigger for the market's fall was the announcement by U.S. President Donald Trump of a new, steep fee of $100,000 for H-1B visa applications. This move is seen as a major blow to the Indian IT industry, which relies heavily on H-1B visas to send skilled workers to the United States.
The news led to a severe sell-off in IT stocks, with the Nifty IT index plummeting by 3%, its worst single-day fall in months. The sell-off wiped out an estimated $10 billion in market capitalisation from listed Indian IT firms, as investors grew concerned about the potential impact on operating margins and profitability.
Top Gainers and Losers
While IT stocks were the biggest losers, some Adani Group companies and financials bucked the negative trend.
| Top Gainers |
Top Losers |
| Adani Enterprises |
Tech Mahindra |
| Adani Power |
Tata Consultancy Services (TCS) |
| Eternal |
Infosys |
| Bajaj Finance |
Wipro |
| Adani Ports |
Cipla |
Sectoral Performance
The market decline was led by the IT sector, with most other major indices also ending in the red.
-
Top Losers: The Nifty IT index was the biggest laggard, dropping 3%. The Nifty Pharma index also declined by 1.4%.
-
Top Gainers: The Nifty Metal index was a notable exception, rising 0.5% and gaining for the third consecutive day. The Nifty Energy index also ended higher, led by gains in Adani Power.
-
Broader Markets: The negative sentiment was widespread, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling by 0.67% and 1.17%, respectively.
Major Corporate Actions and Stock-Specific News
-
Corporate Actions: Several companies had corporate actions scheduled for today. SMS Pharmaceuticals and Solex Energy had their final dividend payouts. Paisalo Digital also had a corporate action listed.
-
Adani Power Hits High: Shares of Adani Power surged over 13%, hitting a 15-month high and extending its recent rally.
-
TechD Cybersecurity Listing: In the IPO market, TechD Cybersecurity made a bumper debut on the NSE Emerge platform, listing at a 90% premium over its issue price.
-
IndusInd Bank CFO Change: Private lender IndusInd Bank appointed Viral Damania as its new Chief Financial Officer. The stock erased its early gains to close over 1% lower.
Global Market Summary
Global markets were cautious as investors assessed the implications of the U.S. Federal Reserve's recent rate cut.
-
Global Stocks: U.S. stock markets had closed higher on Friday after the Fed's rate cut, but the new H-1B visa news from the U.S. dampened sentiment in Asian markets today.
-
Currency: The Indian Rupee weakened, closing 22 paise lower at 88.32 against the U.S. dollar, reflecting the cautious market mood.
Frequently Asked Questions (FAQs)
Why did the IT sector fall so sharply today?
The Nifty IT index plunged 3% following an announcement by the U.S. government to impose a steep new fee of $100,000 on H-1B visa applications. This is expected to significantly increase costs for Indian IT companies.
What was the overall market trend today?
The overall market trend was negative, with the Sensex and Nifty declining for the second consecutive session. The fall was primarily led by a sharp sell-off in the heavyweight IT sector.
Which stocks were the top performers despite the market fall?
Adani Group stocks were the top performers, with Adani Enterprises and Adani Power seeing significant gains. Bajaj Finance and Eternal also ended in the green.
Were there any significant corporate actions today?
Yes, SMS Pharmaceuticals and Solex Energy paid their final dividends. In the IPO market, TechD Cybersecurity had a strong listing on the NSE Emerge platform with a 90% premium