Indian share market saw a sharp sell-off on Monday, which was spearheaded by sharp falls in IT stocks following the US announcement of a sharp increase in H-1B visa fees. Broader markets also dropped as global cues continued to remain mixed with sectoral rotations and corporate actions keeping the traders on the fence.
- Sensex: Dropped 466 points to 82,159.97
- Nifty 50: Down 125 points to 25,202.35
- Nifty IT Index: Fell 3%, erasing almost ₹85,400 crore market cap
- Rupee: Fell 15 paise to ₹88.31 against USD
- Small-cap Index: Decreased by 1.2%
- Mid-cap Index: Dropped 0.7%
Market sentiment was also uneasy with the investors following the development of US immigration fee increase, which is seen to have some effect on Indian IT players’ margins.
- IT Stocks: Dominated the decline following US news to charge a $100,000 H-1B visa fee, triggering cost inflation and lower profitability concerns.
- Infosys, TCS, Tech Mahindra, Wipro, HCL Tech all crashed.
- Pharma: Segment down 1.4% on soft global demand cues.
- Power: Index gained 1.6%, led by NTPC and Adani Power.
- Oil & Gas, Realty: rose 0.7% each.
Key Takeaway: IT weakness was backed by Adani Enterprises (+3.08%), Bajaj Auto (+2%), and UltraTech Cement (+1.38%).
- Pioneer Embroideries: MD Harsh Vardhan Bassi stepped down.
- All Time Plastics: Increased 4,000 MT capacity at Khatalwada.
- Maithan Alloys: Shut down Byrnihat unit due to high power expenses.
- RailTel: Secured ₹18.06 crore overseas internet order.
- PNC Infratech: Received LoA for Bihar bridge project.
- Shipping Corporation of India: Entered into MoU with BPCL, HPCL & IOCL for fleet operations.
- NTPC: Overseas uranium assets procurement for nuclear fuel security.
- TruAlt Bioenergy IPO: Price band ₹472–₹496.
- Saatvik Green Energy IPO: Subscribed 0.85x on Day 2.
- iValue Infosolutions IPO: Subscribed 1.03x on Day 3.
- Rubicon Research: Raised ₹140 crore pre-IPO funding from 360 ONE WAM & TIMF.
The IPO pipeline stays strong, indicating investor enthusiasm amid uncertainty in the markets.
- Vodafone Idea: Imposed ₹6.47 crore as penalty under CGST.
- F&O Trading: Compulsory tax audit based on turnover levels – a serious issue for active traders.
- US Markets: All key US indices closed in the green on Friday, boosting global risk sentiment.
- China: Loan Prime Rate (LPR) left unchanged for 4th month, in spite of Fed rate cuts.
- GIFT Nifty Futures: Fell 77 points to 25,335, reflecting subdued opening for Tuesday's session.
- Hari Om Pipes: Signed ₹3,135 crore MoU to establish steel plant in Gadchiroli.
- Oil India: Launched JV for Rajasthan's 1 GW renewable project.
- HUDCO & NBCC: Signed UP, Haryana, Gujarat construction project MoU.
- Swan Defence: Signed ₹4,250 crore Pipavav Port development MoU.
- Netweb: Bagged ₹450 crore order for Tyrone AI GPU systems.
- Brigade Enterprises: To invest ₹126 crore in North-West Bangalore project.
- Govt Shipping Push: Announced ₹80,000 crore shipping sector schemes.
- Garden Reach: Signed $62.4 billion contract for hybrid multipurpose vessels.
- Crompton: Received LoA for solar water pump systems from MP Urja Vikas Nigam.
- Lupin (Pune biotech plant): USFDA pre-approval inspection registered 4 observations.
- Zydus Life (Ahmedabad): USFDA upgraded the site from OAI to VAI, a huge relief.
- Jubilant Pharma: US subsidiary cleared without any observations.
- Bajaj Auto: Announced zero processing charges for insurance/financing of motorcycles below 350cc, with 50% financing support.
Indian markets are under short-term stress due to IT weakness, triggered by the US H-1B visa fee shock. Export-driven IT players are set to experience margin headwinds, but domestic-centric sectors such as Power, Cement, and Auto continue to display resilience.
Investors need to track closely:
- IPO subscription patterns.
- Progress of US policy affecting Indian corporates.
- Industry-specific power, infra, and shipping tailwinds.
Since global leads are mixed and the rupee is under stress, volatility will persist in the near term.