Indian stock markets continued their downward trajectory for the fifth consecutive session, with the benchmark indices closing in the red amid persistent foreign institutional investor (FII) selling and worries over proposed changes to US visa regulations.

Market Performance

The Sensex tumbled 555.95 points (0.68%) to close at 81,159.68, while the Nifty 50 shed 166.05 points (0.66%), ending the day at 24,890.85. This decline pushed the Nifty below the psychologically important 25,000 mark, reflecting growing investor concerns.

Key Factors Driving the Decline

1. FII Selling Pressure: Foreign institutional investors offloaded nearly ₹9,000 crore worth of Indian shares during the week, contributing significantly to the market's weakness.

2. US H-1B Visa Concerns: Proposed hikes in US H-1B visa fees, potentially reaching $100,000, have raised alarms, particularly impacting the IT sector.

Sector-wise Impact

The IT sector bore the brunt of the selling pressure, with the Nifty IT index plummeting over 6% for the week. Major IT companies traded in negative territory:

• Infosys
• Tata Consultancy Services (TCS)
• Wipro
• HCL Technologies

Top Losers and Gainers

Losers

Gainers

• Bharat Electronics Limited emerged as the top gainer, rising by 2.07%

Market Volatility

The India VIX, often referred to as the fear gauge, surged nearly 9% over the past five sessions, indicating increased market nervousness and uncertainty.

Currency and Commodities

• The Indian rupee traded marginally higher at 88.67 against the US dollar.
• Gold continued its bullish trend, gaining ₹600 to reach ₹113,145 on the Multi Commodity Exchange (MCX).

As global factors and domestic concerns continue to weigh on investor sentiment, market participants will be closely watching for any signs of stabilization in the coming sessions.

The Indian stock market experienced a volatile session on Wednesday, with the benchmark Nifty 50 index closing lower amid concerns over potential changes to H-1B visa regulations. The index ended the day at 25,202.35, marking a 0.49% decline.

Market Volatility and Key Levels

The Nifty 50 opened on a weak note and displayed significant intraday fluctuations throughout the session. After an initial dip, the index managed to recover and briefly surpassed the 25,300 level. However, selling pressure intensified later in the day, pushing the index to an intraday low of 25,151 before it settled at the closing price.

Technical analysts are closely watching the critical support zone between 25,037 and 25,150. On the upside, the index is expected to face resistance in the 25,330-25,360 range.

IT Sector Bears the Brunt

The technology sector emerged as the day's biggest casualty, with the Nifty IT index experiencing its steepest single-day fall since April. The sector-specific index plummeted by 2.95%, reflecting investors' concerns about potential changes to the H-1B visa program, which could impact Indian IT companies' operations in the United States.

Volatility on the Rise

The India VIX, often referred to as the fear gauge, jumped over 5% from its recent multi-month lows. This surge in the volatility index suggests that market participants are bracing for potential turbulence in the near term.

Stock in Focus: NLC India

Despite the overall market weakness, NLC India stood out as the stock of the day. The company's shares formed a bullish candle on the charts, accompanied by strong momentum indicators. Technical analysts suggest that NLC India has the potential to test the Rs 279-290 levels, with a support level established at Rs 247.

Market Outlook

As global cues and domestic factors continue to influence market sentiment, investors are advised to remain cautious. The IT sector, in particular, may face heightened scrutiny in the coming days as more clarity emerges on the H-1B visa situation. Meanwhile, the broader market's ability to hold onto the crucial support levels will be key in determining the short-term trend.