Donald Trump
Last week, the Indian stock market saw a strong decline. The Nifty 50 broke around 3% and the IT index fell by 8%. The strengthening of the dollar, the frequent exit of foreign funds and the US decision to increase the H-1B visa fees broke the back of investors.
The biggest decline of six months
On September 26, Friday, the market closed at the red mark on the sixth consecutive day. The Sensex broke 733 points to 80,426 and the Nifty slipped to 236 points to close at 24,655. The Sensex broke 2,199 points and the Nifty 50 672 points in a week. This was the biggest weekly decline of the last six months.
H-1B visa fee crisis on IT sector
US President Donald Trump has signed an order to increase the H-1B visa fee annually to $ 100,000 (about ₹ 83 lakh). This has a direct impact on Indian IT companies, whose thousands of employees are working in America. This was the reason that the IT index recorded a major decline of up to 8%.
Fear of selling and new tax of foreign investors
Foreign investors are constantly withdrawing money from the Indian market. At the same time, the US has announced 100% on medicines, 50% on kitchen cabinets, 30% on furniture and 25% import duty on heavy trucks. These steps further increased the concern of investors.
How much capital drowned?
- The market cap of companies listed in NSE declined by about ₹ 16 lakh crore in this week. 43 companies involved in the Nifty 50 suffered losses.
- The biggest disadvantage: Tech Mahindra (-9.4%), TCS (-8.5%), Wipro and Trent (-8%), Infosys (-5.9%)
- Slight advantage: Maruti (2.7%), Axis Bank (1.6%), L&T (1.5%), Eicher Motors (1.1%)
Sector performance
- IT Sector: -8% (biggest decline)
- Realty: -6.1%
- Pharma: -5.2%
- Consumer Durables: -4.6%
- Media: -2.7%
- Even in small stocks, he was badly hit. Nifty Smallcap 100 5.1% and Nifty Midcap 100 2.1% break.
Experts’ opinion
HSBC Global Investment Research says that since September 2024, Indian shares have lagged behind 32% emerging markets, which is the biggest decline since 2001. However, experts believe that the Indian market is now in an attractive position. The brokerage report states that valuations have returned to the historical level. Inflation is decreasing and policy support is getting. In such a situation, you can see improvement in earnings and foreign investors can return.