Indian equity markets slipped on Wednesday, with the benchmark Sensex falling as much 380.48 points to 81,721.62 in early trade and the Nifty shedding 106.45 points to 25,063.05. Investor sentiment was dampened by sustained foreign fund outflows and concerns over potential changes in the US H-1B visa system.
Tech and banking stocks were among the key laggards, with Tech Mahindra, Wipro, Tata Motors, HDFC Bank, and ICICI Bank declining up to 2 percent intraday. Analysts attributed the decline to multiple factors, including proposed modifications to the US visa framework. The US Department of Homeland Security has suggested a shift to a wage-based system for H-1B visa allocations, prioritising higher-paid candidates. Market observers note that this could adversely affect Indian IT services exporters, which traditionally rely on cost-effective H-1B staffing for overseas projects.
The broader market sentiment was also pressured by continuing foreign institutional investor (FII) selling, with equities worth ₹3,551.19 crore offloaded on Tuesday. Experts point out that persistent FII outflows have heightened volatility, particularly in mid-cap and large-cap segments.
Global cues contributed to the bearish mood, with South Korea’s Kospi and Japan’s Nikkei 225 trading lower, reflecting overnight losses on Wall Street. Higher Brent crude prices, which rose 0.28 percent to $67.82 a barrel, added to concerns for India, given its heavy dependence on oil imports. The Indian rupee weakened seven paise to 88.80 against the US dollar in early trade, hovering near record lows, as analysts highlighted the combined effect of capital outflows, tariff-related uncertainties, and the proposed US visa fee hike.
Further weighing on markets were comments from US Federal Reserve Chair Jerome Powell, who emphasized the need for caution in easing interest rates. Powell’s remarks suggested that premature monetary easing could entrench inflation, while overly restrictive policies could harm employment prospects. Market strategists noted that the Fed’s cautious stance typically keeps foreign investors cautious about emerging markets, including India.
Technical analysts observed that while the Nifty managed to hold the 25,000 support level, upside momentum remained capped. Geojit Financial Services’ Chief Market Strategist indicated that without a decisive move above 25,330, the index was likely to oscillate in a 24,880–25,080 range, reflecting both domestic and global headwinds.
Overall, Wednesday’s trading highlighted the vulnerability of Indian markets to global macroeconomic shifts and domestic liquidity pressures. Analysts suggest that investor focus will remain on developments related to US visa policies, FII flows, crude price fluctuations, and the trajectory of the rupee in the near term, with market participants closely monitoring both technical levels and fundamental drivers for signs of stability.
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