Nifty and Sensex Extend Losses; Nifty IT Falls Nearly 3%, Small-cap Index Snaps 11-Day Winning Streak

Market Update at 4:10 PM: On Monday, September 22, 2025, Indian equity benchmark indices closed in negative territory, extending losses from the previous session. The Nifty 50 ended down by 124.70 points, or 0.49 per cent, at 25,202.35, while the Sensex dropped by 466.26 points, or 0.56 per cent, to 82,159.97. 

The decline was largely driven by information technology (IT) stocks after the US announced a new fee structure for fresh H-1B visa applications. Meanwhile, India VIX, the market’s volatility gauge, closed above the 10 mark after hitting a record low of 9.39 on Friday.

Among sectoral indices, the Nifty IT, the second-largest sector in the Nifty and Sensex benchmarks, fell sharply by 2.95 per cent, marking its biggest intraday loss in two months. Nine out of ten constituents declined, with Infosys, Tata Consultancy Services (TCS), HCLTech, and Wipro each losing over 1.8 per cent, making them the top Nifty 50 laggards. 

On the other hand, Nifty Energy emerged as the top gainer, rising 0.69 per cent, with 17 of 40 constituents advancing.

Four of the 11 key sectoral indices ended in positive territory, while broader indices like Nifty Midcap 100 and Smallcap 100 closed in the red.

Within the Nifty 50, the biggest contributors to gains were Eternal Industries (+8.28 points), Bajaj Finance (+7.95 points), and Adani Enterprises (+5.78 points). Conversely, Infosys (-31.24 points), Reliance Industries (-24.67 points), and TCS (-21.12 points) weighed heavily on the index. 

Notably, all Adani Group stocks traded higher, continuing recent gains after the Securities and Exchange Board of India (SEBI) dismissed some of the allegations made by US-based short-seller Hindenburg Research.

Broader market performance was negative, with the Nifty Midcap 100 closing down 0.67 per cent and the Nifty Smallcap 100 down 1.17 per cent, ending an 11-day winning streak. 

Market breadth indicated a higher number of declining stocks, with 1,920 stocks falling and 1,186 advancing out of 3,206 traded on the NSE. A total of 107 stocks hit their 52-week highs, while 53 touched their 52-week lows. Additionally, 122 stocks were locked in upper circuits, and 75 were in lower circuits.

Market Update at 12:15 PM: Benchmark indices opened lower on Monday, pressured by weakness in information technology stocks. As of 12 PM, the BSE Sensex was at 82,458, down 172 points or 0.21 per cent, while the NSE Nifty50 stood at 25,296, lower by 31 points or 0.12 per cent.

IT stocks faced heavy selling pressure after US President Donald Trump announced a higher one-time fee of USD 100,000 for new H-1B visas. The Nifty IT index fell 4 per cent to day’s low of 35,145.10 in intraday trade on the NSE. 

On the NSE, the biggest drags included Tech Mahindra, Infosys, TCS and HCL Technologies, while Adani Enterprises, Adani Ports and HDFC Life were among the Top Gainers.

Broader markets also slipped into negative territory. The Nifty Small-Cap index was down 0.25 per cent, and the Nifty Mid-Cap declined 0.19 per cent. Sector-wise, Nifty IT index dropped 3 per cent, followed by Nifty Mid-small IT and telecom, which fell 1.75 per cent. Nifty Pharma and Consumer Durables also declined nearly 0.25 per cent.

On the other hand, Nifty Auto, Media and Metal indices traded in the green, providing some support to the market.

Market Update at 10:00 AM: India’s equity markets opened lower on Monday, weighed down by losses in information technology stocks after the U.S. introduced a new $100,000 fee for fresh H-1B visa applications. At 9:15 a.m. IST, the Nifty 50 slipped 0.35% to 25,238.1, while the BSE Sensex declined 0.58% to 82,151.07.

Of the 16 major sectors, 11 recorded losses, with the IT index falling 3.1% and leading the sectoral declines. Meanwhile, small-cap and mid-cap indices remained largely unchanged.

The move follows U.S. President Donald Trump’s Friday announcement requiring companies to pay significantly higher fees for H-1B visas. Last year, Indians made up 71% of approved H-1B applicants. The development could impact India’s $283 billion IT industry, which derives around 57% of its revenue from U.S. clients and has traditionally benefited from American work visas and outsourcing of software and business services.

Pre-Market Update at 7:30 AM: Equity benchmark indices Sensex and Nifty 50 are expected to open lower on Monday, September 22, after investor sentiment was hit by the US administration’s sudden decision to impose a $100,000 H-1B visa fee. At 7:00 AM, the GIFT Nifty was trading near 25,317, down by 118 points.

US President Donald Trump signed an executive order mandating the fee for each new H-1B visa application effective September 21, 2025. Existing visa holders remain exempt, but Indian IT firms are expected to be disproportionately affected since they account for 71 per cent of total H-1B beneficiaries. Shares of Indian IT companies such as Infosys, Wipro, and Cognizant declined on US exchanges, reflecting concerns of near-term margin pressure. The Nifty IT index has already slipped 16 per cent in CY25.

Meanwhile, the new Goods and Services Tax (GST) rates came into effect on Monday. The GST Council earlier approved rationalisation of tax slabs from four to two, with rates of 5 per cent and 18 per cent, alongside a special rate of 40 per cent on select items and sin goods. The revision is expected to reduce prices for a large number of products.

This week, investors will track updates on the H-1B visa policy, the impact of new GST rates, India-US trade negotiations, foreign fund flows, gold price trends, and key macroeconomic and geopolitical cues.

On Friday, September 19, Foreign Institutional Investors (FIIs) were net buyers of equities worth Rs 390.74 crore, marking their second consecutive session of purchases. Domestic Institutional Investors (DIIs) bought shares worth Rs 2,105.22 crore, extending their buying streak to 19 consecutive sessions.

Indian markets ended lower on Friday as profit-booking in financial and IT stocks weighed on benchmarks. The Nifty 50 slipped 0.38 per cent to close at 25,327.05, while the Sensex declined 0.47 per cent to 82,626.23. Despite the fall, both indices gained 0.9 per cent for the week, supported by a US interest rate cut, domestic tax revisions, and optimism around India-US trade talks.

US equities ended higher on Friday, with all three major indices closing at record highs. The Dow Jones Industrial Average rose 172.85 points, or 0.37 per cent, to 46,315.27. The S&P 500 gained 32.40 points, or 0.49 per cent, to 6,664.36, while the Nasdaq Composite climbed 160.75 points, or 0.72 per cent, to 22,631.48. The rally followed the US Federal Reserve’s first interest rate cut of 2025 and signals of more easing ahead.

Gold prices edged higher in Asian trade, with spot gold up 0.1 per cent at USD 3,687.84/oz. Oil prices also firmed, supported by geopolitical risks in Europe and the Middle East. Brent crude futures rose 0.42 per cent to USD 66.96 a barrel, while US West Texas Intermediate crude was up 0.32 per cent at USD 62.88 a barrel.

For today, Sammaan Capital, Angel One and HFCL will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.