US Visa Changes Jolt Indian IT Stocks Amid Market Turbulence
Indian stock markets dip as the Trump administration's H-1B visa policy overhaul triggers uncertainty in the IT sector. Key indices Nifty 50 and BSE Sensex opened lower, with notable declines in IT stocks. Despite this, positive technical indicators provide a hope for market rebound.
- Country:
- India
India's stock markets witnessed a shaky start on Monday, following the Trump administration's announcement of significant changes to the H-1B visa policy in the United States. This development has cast a cloud of uncertainty over India's vital IT sector, which heavily relies on the U.S. for business operations and professional deployment.
The Nifty 50 index saw a drop as it opened at 25,238.10, down 88.95 points or 0.35 per cent, and the BSE Sensex began the day at 82,138.99, slipping by 487.24 points or 0.59 per cent. IT stocks bore the brunt, with the Nifty IT index falling over 3 per cent in early trade. Major players like TCS, Infosys, Wipro, and HCL Tech faced significant selling pressure.
The changes announced include a new USD 100,000 application fee for each new H-1B visa, sparking confusion and concern among tech companies and international workers, particularly those from India, who make up over 70 per cent of H-1B beneficiaries. Despite the weak start, technical indicators remain positive, with experts suggesting the possibility of an uptrend continuation if the Nifty 50 surpasses the current resistance level. Broader market indices, including Nifty 100, Nifty Midcap 100, and Nifty Smallcap 100, also faced downward pressure.
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