The Indian stock market closed Monday’s session lower, dragged down by a sharp sell-off in tech and pharma stocks. The decline came after the U.S. introduced a new fee structure for fresh H-1B visa applications, which weighed heavily on frontline indices and offset the positive sentiment from the implementation of new GST rates.
The Nifty 50 finished the session 0.50% lower at 25,201, while the S&P BSE Sensex lost 0.56% to settle at 82,159. The broader markets also drifted lower, with the Nifty Midcap 100 and Nifty Smallcap 100 dropping 0.60% and 1.11%, respectively.
The Donald Trump administration on Friday increased the fee for H-1B visas to USD 100,000 from USD 1,000, a steep hike expected to impact the Indian IT sector. Companies could face higher costs and potential delays in deploying skilled workers to the US, with analysts warning that it may also affect the profitability of some mid-tier tech firms.
Meanwhile, new GST rates, approved earlier this month, came into effect today and are expected to boost consumption in the economy, potentially benefiting FMCG, consumer durables, automobiles, and other sectors.
Market experts believe the revised rates, which have lowered retail prices across key categories just ahead of the festive season, will help companies drive volume growth. Many firms have already announced price cuts, with the automobile sector, particularly passenger vehicles, expected to see a revival in demand.
