Sensex and Nifty Edge Lower as H-1B Visa Fee Hike Hits IT Stocks

Mumbai, September 22, 2025 – The benchmark indices of the Indian stock markets opened in the red and slipped further in early trade on Monday. One of the most critical reasons for the fall can be attributed to the US President’s announcement of a significant hike in H-1B visa fees to $100,000 per candidate.

At 11:30 a.m., the BSE Sensex was down 200.68 points, or 0.24%, at 82,425.55, while the NSE Nifty50 dipped 42.80 points, or 0.17%, to 25,284.25. The overall market reaction was gloomy, and after a slow start, both the benchmarks slipped further into the red.

IT Stocks Bore the Brunt

Tech majors bore the brunt of the announcement. Tech Mahindra, Infosys, HCL Tech, and TCS dropped between 2.26 percent and 3.88 percent in early deals, dragging the indices lower. The fee hike is expected to increase operational costs for Indian IT companies that rely heavily on H-1B visas for overseas staffing.

Sectoral Woes

Beyond IT, Sun Pharma, Bharat Electronics, Axis Bank, and Tata Steel also slipped into the red. On the other hand, Adani Ports, Eternal, Trent, and Bajaj Finance managed to hold ground and trade with gains.

Volatility Inches Higher (India VIX Index)

The India VIX rose 5.01 percent to 10.47, indicating higher near-term volatility as investors assess the fallout of the US visa policy alongside domestic cues.

Global and Domestic Triggers

While Indian IT reels under pressure, domestic consumption-linked stocks may find support from the GST rate cuts that come into effect today, potentially boosting household demand.

Globally, sentiment remained mixed. South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite were in positive territory, while Hong Kong’s Hang Seng traded lower. On Wall Street, US indices ended higher on Friday.

Meanwhile, Brent crude advanced 0.66 percent to USD 67.12 a barrel, adding to concerns on imported inflation.

Institutional Flow

Foreign Institutional Investors (FIIs) were net buyers on Friday, pumping in Rs 390.74 crore, even as the indices had ended sharply lower. The Sensex had then slipped 388 points and the Nifty closed 97 points down.

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