IT stocks under pressure after US H-1B fee hike; Sensex falls 150+, Nifty breaches 25,300
Indian equities slipped in early trade on Monday, weighed down by heavy losses in IT counters, after the U.S. hiked the one-time H-1B visa fee to $100,000 (about ₹88 lakh), denting confidence in a sector that had only recently begun to recover.
The S&P BSE Sensex opened 0.37% lower at 82,323.62, down 302.61 points, while the NSE Nifty 50 declined 0.26% to 25,260, losing 67.05 points. By 9:30 AM, the Sensex had pared some losses, trading 182 points (0.22%) lower at 82,443, and the Nifty50 was down 40 points (0.16%) at 25,288.
Technology shares plunged as much as 6% after the sharp visa fee hike, seen as a blow to the industry’s long-standing practice of rotating skilled engineers into the U.S. The Nifty IT index was the day’s worst performer, pulling the benchmark lower by 0.3%, with Tech Mahindra sliding nearly 6%.
All key sectoral indices were in the red, though mid- and small-cap stocks were largely steady, showing resilience compared to large-caps.
Expert Commentary
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market is likely to show a “dual character” today, with IT names hit by the H-1B visa fee shock, while domestic consumption-related themes benefit from the cut in GST rates that comes into effect today.
“This festive season is likely to see one of the strongest consumption booms in recent years,” he noted.
He added that although the Indian market has significantly underperformed global peers over the past year, that phase may soon be ending. However, he cautioned against expecting a runaway rally, citing elevated valuations.
“The prevailing low interest rate environment will fuel consumption and credit demand, boosting profitability of financials. Banking stocks, which had been under pressure from NIM compression fears, are now fairly valued and could generate decent returns,” he said.
Anand James, Chief Market Strategist at Geojit Financial Services, observed that markets may be due for a breather after reaching key resistance levels.
“Last week’s test of the 25,400–600 zone, along with the evening star pattern on charts, suggests the possibility of a pullback rather than immediate continuation of the uptrend,” he said. According to James, the likely support zone is 24,880–24,800, but if the downside is contained and Nifty holds above 25,200–25,000, “we could be looking at a sideways phase followed by recovery attempts.” He, however, noted that a decisive move above 25,669 is less probable in the near term.
