New Delhi: Indian markets began the week on a cautious note, slipping into the red on Monday with technology stocks bearing the brunt. News9’s Kartik Malhotra spoke to Kranthi Bathini of WealthMills Securities to understand the mood among investors after the latest policy shock from Washington DC.
The Nifty IT index fell by nearly 4 per cent in intraday trade after US President Donald Trump announced a steep $100,000 (Rs 88 lakh) one-time fee for new H-1B visa applications. Heavyweights such as Infosys and TCS were among the key losers, unsettling a sector that had only recently shown signs of a rebound.
Experts noted that the sudden policy move had jolted confidence in IT counters, with investors worried about cost pressures and future hiring challenges. The hike creates short-term uncertainty for the sector, but Indian companies have already reduced their dependence on such visas. The broader impact may remain limited, they averred.
Despite the IT drag, strength was visible across other indices. Auto, energy, media, realty, and banking shares traded higher, suggesting selective buying interest. Healthcare and mid- to small-cap stocks, however, also saw weakness. Bathini said the market’s mixed tone reflected “a balancing act between domestic optimism and global uncertainties.”
Global cues added to the caution. US S&P 500 futures edged down 0.1 per cent, Hong Kong’s Hang Seng lost 0.8 per cent, while Japan’s Topix gained 0.9 per cent.
India’s IT industry body Nasscom sought to calm nerves, clarifying that the higher fees apply only to new applications and would have only a marginal effect. With benchmark indices still just a few points shy of record highs, Bathini believes investors remain wary but not bearish.
However, analysts believe that the sentiment is not entirely negative, and added that the broader participation across sectors indicates confidence, though the near term will remain volatile.