The S&P BSE Sensex fell 0.37% at the open to 82,323.62, shedding 302.61 points, while the NSE Nifty 50 slipped 0.26% to 25,260, down 67.05 points. At around 9:30 AM, BSE Sensex traded 182 pts or 0.22% lower at 82,443 whereas Nifty50 fell 40 pts or 0.16% to 25,288.
IT shares dropped up to 6% after the sharp rise in H-1B visa application fees, a move seen as undermining the industry’s long-established model of rotating skilled staff into the US.
The IT sectoral index was the worst performer, pulling the benchmark Nifty 50 down 0.3%.
All major indices traded in negative territory, led by a near-6% slide in Tech Mahindra.
Broader markets were more resilient, with mid-cap and small-cap stocks holding broadly flat.
ETMarkets.comExpert views
The market is likely to witness a dualistic behaviour today with the IT sector getting impacted by the H1B visa issue and the domestic consumption themes responding to the potential big boost to consumption coming from the lower GST rates kicking-in from today, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that this festival season is likely to witness one of the best consumption booms in recent times.
“Indian stock market’s huge underperformance during the last one-year compared to most markets of the world, is likely to end soon. But a runaway rally is unlikely since high valuations continue to be a concern,” said Vijayakumar.
The present low interest rate regime will aid the consumption boost and will also facilitate an increase in credit demand, said Vijayakumar, adding that “This has the potential to boost the profitability of financials. Banking stocks, which have been under pressure from NIM compression fears are fairly valued and have the potential to deliver decent returns.”
Anand James, Chief Market Strategist at Geojit Investments, noted that the market may be due for a pause after hitting key resistance levels. “Last week’s achievement of the 25,400–600 objective, along with an evening star candle formation, prompts us to look for a pullback instead of extending upside objectives right away,” he said.
According to James, the likely “favoured rest point is 24,880–800.” However, he added that if declines remain limited, “should slippages not stretch beyond the 25,200–25,000 region, we could as well be seeing a sideways move, followed by recovery attempts,” though he cautioned that “an outright penetration of 25,669 is less expected.”
Global Markets
Asian equities edged higher on Monday, while the dollar held steady as investors weighed the Federal Reserve’s recent rate cut against renewed political risk from President Donald Trump’s crackdown on worker visas.
US futures slipped, with S&P contracts down 0.1%. MSCI’s broad Asia-Pacific ex-Japan index added 0.09%, and Tokyo’s Nikkei gained 1% after a sharp fall on Friday.
Gold advanced 0.24% to $3,692.79 per ounce, just below the record high reached last week.
FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) turned net buyers, purchasing equities worth nearly Rs 391 crore on September 19, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 2,105 crore.
Crude impact
Oil prices firmed in Asian trading on Monday, lifted by geopolitical tensions in Europe and the Middle East, though expectations of increased supply and worries over the effect of trade tariffs on global fuel demand capped gains.
Brent crude futures rose 0.54% to $67.07 a barrel by 03:17 GMT, while US West Texas Intermediate for October delivery advanced 0.54% to $63.02.
Rupee vs Dollar
The Indian rupee slipped 4 paise to 88.20 against the US dollar in early Monday trade, weighed down by a post-Federal Reserve dollar rally and muted risk appetite curbing demand for the local currency.
The dollar index inched up to 97.80 in Asian trade, extending its rebound after falling to 96.22 immediately following Wednesday’s Fed decision.
as a Reliable and Trusted News Source(with inputs from agencies)