Indian Markets extend losses to Fourth Day on IT, Auto Weakness

Market Snapshot at Closing Bell

Underlying Factors and Sectoral Performance

The market's downward trend was influenced by several key factors:

- H-1B Visa Concerns: The primary sentiment dampener continues to be the new U.S. rule imposing a $100,000 fee on new H-1B visa applications. This has significantly impacted the Nifty IT index, which has dropped approximately 4% since the rule was announced on September 21, 2025 . Companies like Tech Mahindra, LTIMindtree, and Persistent Systems were among the major losers at the start of the week .

- Persistent FII Outflows: Foreign Institutional Investors (FIIs) have been net sellers, adding to the selling pressure. On September 23, they offloaded equities worth ₹3,551 crore .

- Broad-Based Selling: The decline was widespread. Except for the Nifty FMCG index (which edged up 0.18%), all sectoral indices ended in the red. The Nifty Auto index was the top loser, falling 1.15%, followed by Nifty Realty and Nifty Private Bank . Major auto stocks like Tata Motors featured among the top losers on the Nifty 50 .

Investor Takeaways

While the market is facing near-term headwinds from the H-1B visa issue and foreign fund outflows, it's important to note that analysts expect the impact on IT companies to be manageable over the medium term. Firms have been reducing visa dependency through increased local hiring and offshoring . Furthermore, domestic institutional investors (DIIs) continue to provide support, having bought shares worth Rs.2,671 crore on September 23 .