Why Did the Stock Market Open Marginally Lower with Nifty IT Down 2.68%?
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Synopsis
The Indian stock market opened lower despite global gains, with IT stocks facing the brunt of the impact due to H-1B visa concerns. Analysts remain optimistic as the Nifty holds above key averages, suggesting a mixed market outlook ahead.
Key Takeaways
- Indian stock market opened lower despite global gains.
- IT stocks faced significant declines due to concerns over H-1B visa regulations.
- Sensex and Nifty managed to limit losses.
- Market sentiment remains cautiously optimistic.
- Key support and resistance levels identified for future trading.
Mumbai, Sep 22 (NationPress) The Indian benchmark indices commenced trading on a slightly lower note on Friday, despite favorable global signals, with IT stocks experiencing significant declines due to concerns regarding the new US H-1B visa regulations.
As of 9:26 AM, the Sensex was down by 189 points, or 0.23 percent, standing at 82,772, while the Nifty decreased by 40 points, or 0.16 percent, at 25,286. Both Sensex and Nifty opened with reductions of 0.40 percent and 0.33 percent, respectively, but later managed to limit their losses.
Major IT firms including Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Tech Mahindra, and Coforge faced declines during the morning session.
The US government has indicated that visa holders returning to the country will be exempt from the new $100,000 fee, which has provided slight relief to Indian IT companies.
The White House clarified that the visa fee will be a one-time charge only for new applications starting from the next lottery cycle (March–April 2026), and will not apply to renewals.
The broad market indices Nifty Midcap 100 fell by 0.05 percent, while the Nifty Smallcap 100 dropped by 0.12 percent.
Key decliners included Tech Mahindra, TCS, Tata Motors, Apollo Hospitals, and Dr. Reddy's Labs.
Among sectoral indices, Nifty IT emerged as the biggest loser, falling by 2.68 percent. Nifty Pharma and Nifty Healthcare also faced declines, down by 0.45 percent and 0.33 percent respectively. All other sectoral indices showed minor gains.
Notably, the Nifty index has remained firmly above the 25,300 mark, closing at 25,327 in the previous session. It continues to trade above crucial moving averages—the 20-day, 50-day, and 200-day EMAs—indicating a broader bullish sentiment.
Analysts believe that market sentiment will stay positive as long as the index remains above these averages. Immediate resistance is identified at 25,500, followed by 25,600 and 25,850 zones, while support levels are at 25,150 and 25,000.
They suggested that the market may exhibit mixed behavior, with the IT sector impacted by the H-1B visa concerns, while domestic consumption themes may respond favorably to anticipated increases in consumption due to lower GST rates effective today.
According to analysts, the current low interest rate environment is expected to enhance consumption and facilitate a rise in credit demand, thereby improving the profitability of financial institutions.
In the Asia-Pacific region, most markets showed gains on Monday, following Wall Street's positive performance from Friday, supported by China's decision to maintain key lending rates.
In the US markets, the Nasdaq increased by 0.72 percent, the S&P 500 rose by 0.49 percent, and the Dow gained 0.37 percent in the last trading session.
Most Asian markets were trading positively during the morning session. The Shanghai index in China edged up by 0.07 percent, while Shenzhen advanced by 0.17 percent. Japan's Nikkei saw an increase of 1.45 percent, whereas Hong Kong's Hang Seng Index declined by 0.82 percent. South Korea's Kospi recorded a gain of 1.06 percent.
On Friday, foreign institutional investors (FIIs) bought equities worth Rs 390 crore, while domestic institutional investors (DIIs) were net purchasers of equities valued at Rs 2,105 crore.
Point of View
It's essential to note that while the market is experiencing some challenges, particularly in the IT sector due to external factors, the long-term outlook remains promising. The resilience shown by the indices highlights the inherent strength of our economy, and we must stay informed and prepared for the changes ahead. NationPress is committed to delivering trustworthy updates as we navigate these dynamic market conditions.
NationPress
23/09/2025
Frequently Asked Questions
What caused the Indian stock market to open lower?
The Indian stock market opened lower primarily due to declines in IT stocks, influenced by concerns over the new US H-1B visa regulations.
How are the new H-1B visa rules affecting Indian IT companies?
The new H-1B visa rules have raised concerns among Indian IT companies about additional fees and potential impacts on their workforce.
What are the key levels to watch for the Nifty index?
Key resistance levels for the Nifty index are at 25,500, followed by 25,600 and 25,850, with support levels at 25,150 and 25,000.
What was the trading performance of foreign and domestic institutional investors?
On Friday, foreign institutional investors purchased equities worth Rs 390 crore, while domestic institutional investors were net buyers of equities amounting to Rs 2,105 crore.
How are global markets influencing the Indian market?
Global market trends, particularly in the US and Asia-Pacific regions, are influencing the Indian market, with positive performances often leading to optimism here.
