New Delhi: Indian equity markets opened the day largely flat on Tuesday, reflecting a cautious investor sentiment as optimism surrounding trade prospects with the United States was counterbalanced by concerns over new visa regulations. While investors remained hopeful about potential improvements in bilateral trade ties, the announcement of increased H-1B visa fees in the U.S. created uncertainty for India’s information technology (IT) sector, a major driver of the country’s export economy.
The benchmark Nifty 50 index closed at 25,169.5 points, down 0.13%, while the BSE Sensex ended at 82,102.1 points, showing a marginal drop of 0.07%. Analysts noted that although broader market trends reflected global optimism about trade, IT stocks faced pressure due to the elevated costs associated with hiring talent from India for the U.S. market. Companies like Infosys, TCS, and Wipro saw declines between 2.2% and 3.1%, collectively erasing billions in market value.
Conversely, the auto sector demonstrated resilience and provided support to the broader indices. The Nifty Auto index rose by 1%, with Maruti Suzuki India gaining 2.2%, followed by Mahindra & Mahindra and Eicher Motors. Analysts attributed these gains to strong consumer demand during the Navratri festival and government incentives, including GST cuts, which are expected to stimulate vehicle sales through fiscal year 2026. This sector’s performance highlighted how domestic consumption trends can offset some external uncertainties.
Financial stocks also showed signs of strength. The Nifty Financials index climbed 0.1%, and the Nifty Bank index gained 0.4%. Bajaj Finance shares increased by 1.9%, while the State Bank of India (SBI) rose 2.8%. Experts highlighted that strong loan growth, improving margins, and manageable credit costs are key factors driving investor confidence in these institutions, helping them counterbalance the negative sentiment from IT sector concerns.
Meanwhile, the Indian rupee faced depreciation pressures, sliding to an all-time low of 88.62 against the U.S. dollar. The weakening currency was attributed to the dual effects of higher U.S. tariffs and the elevated H-1B visa fees, which could affect IT profitability and foreign inflows. Investors are closely monitoring how these macroeconomic factors will influence earnings in the coming quarters.
On the diplomatic front, India has engaged in high-level discussions to mitigate trade tensions. Indian Foreign Minister Subrahmanyam Jaishankar met with U.S. Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly in New York, emphasizing sustained dialogue to ensure progress on key trade and visa issues. Market observers view these talks as a potential stabilizing factor for investor confidence in the medium term.
In conclusion, India’s markets remain at a crossroads, influenced by global policy developments and domestic sector dynamics. While IT sector concerns continue to weigh on sentiment, sectors driven by domestic consumption, along with ongoing diplomatic engagement, may provide the resilience needed to sustain market stability in the near term.