Why Did the Stock Market End Lower After a Volatile Session?
Click to start listening
Synopsis
In a day marked by volatility, the Indian stock market faced significant challenges, primarily due to the IT sector's downturn and concerns surrounding the steep H-1B visa fees. Despite a brief recovery, major indices ended lower, with various sectors impacted. Find out how these developments have shaped market sentiment and investor strategies.
Key Takeaways
- IT stocks faced significant selling pressure due to H-1B visa fee concerns.
- GST reforms provided a temporary lift to the market.
- Sensex and Nifty ended lower, reflecting broader market volatility.
- Profit-booking led to declines in major indices.
- Investors should stay informed about sectoral impacts moving forward.
Mumbai, Sep 22 (NationPress) The Indian benchmark indices concluded the day in the negative zone following a turbulent session.
The market was weighed down by IT stocks early on, triggered by the US administration's announcement of a $100,000 fee for new H-1B visas. Nevertheless, the market made a swift recovery, supported by the implementation of GST reforms that began on Monday.
The Sensex closed at 82,159.97, down 466.26 points or 0.56 per cent. The 30-share index opened lower at 82,151.07, compared to the previous session's close of 82,626.23, primarily due to significant declines in IT stocks. However, the new GST reforms helped prevent the index from dropping further.
The Nifty finished at 25,202.35, down 124.70 points or 0.49 per cent.
According to Ashika Institutional Equities, "The day commenced on a weak note, with negative global cues and fears over the $100,000 H-1B visa fee for new applicants affecting market sentiment. Benchmark indices opened lower, reflecting the cautious global mood. Despite this, the market quickly attempted a recovery and filled the gap created by the initial decline."
However, selling pressure returned, leading the Nifty to its intraday low as profit-taking dominated the latter part of the session, the report indicated.
Among the top losers in the Sensex basket were Tech Mahindra, TCS, Tata Motors, Trent, HCL Tech, Sun Pharma, SBI, L&T, ITC, BEL, Maruti Suzuki, and Kotak Bank. In contrast, stocks such as Eternal, Bajaj Finance, Adani Ports, Ultratech Cement, Hindustan Unilever, and Axis Bank showed gains.
The majority of sectoral indices also closed in the red due to the selling pressure. Nifty Bank fell 174.10 points, Nifty Auto dropped 65 points or 0.24 per cent, Nifty FMCG declined 266 points or 0.47 per cent, and Nifty IT closed 1078 points or 2.95 per cent lower.
The broader market mirrored this trend as well. Nifty Small Cap 100 decreased by 215 points or 1.17 per cent, Nifty Midcap 100 fell by 394 points or 0.67 per cent, and Nifty 100 ended the session 91 points or 0.35 per cent lower.
Point of View
I believe the recent fluctuations in the stock market reflect broader economic uncertainties. While the implementation of GST reforms is a positive step, the concerns surrounding H-1B visa fees highlight the challenges faced by sectors reliant on global talent. It is crucial for investors to stay informed and adaptable in this evolving landscape.
NationPress
22/09/2025
Frequently Asked Questions
What caused the stock market decline?
The decline was primarily due to the drop in IT stocks following the US announcement of a $100,000 fee for new H-1B visas, coupled with negative global cues.
How did GST reforms affect the market?
The implementation of GST reforms provided a temporary boost, preventing the market from declining further despite initial selling pressure.
Which sectors experienced the most significant losses?
The IT sector faced the most significant losses, along with declines in Nifty Bank, Nifty Auto, and Nifty FMCG.
What is the current state of the Sensex and Nifty?
The Sensex closed at 82,159.97, down 466.26 points, while the Nifty ended at 25,202.35, down 124.70 points.
What should investors watch for moving forward?
Investors should closely monitor further developments regarding H-1B visa policies and the impact of ongoing economic reforms.
