In the last four days, the Sensex and Nifty have fallen by about 1.5%, causing investors a loss of over 5 lakh crore rupees. The reasons for the decline are not just the US visa fee hike and tariffs, but also the strengthening dollar, the depreciating rupee, selling by foreign investors, rising crude oil prices, and pressure on IT stocks.
Stock market: After a rally in the second week of September 2025, the Indian stock market has witnessed significant pressure. Between September 18 and 24, the Sensex fell by 1,298 points and the Nifty by 366 points. Experts believe that US President Donald Trump's decision to increase H1B visa fees and tariff uncertainties have weakened investor sentiment. Additionally, the rupee's record low, outflow of foreign capital, rising crude oil prices, and the apprehension of increasing costs for IT companies have also dragged the market down.
Impact of Trump's Decision
US President Donald Trump recently significantly increased H1B visa fees. This decision has directly impacted India's IT companies. Since H1B visas are predominantly used by professionals from India, this has placed an additional burden on Indian tech companies operating there and their employees. This decision has also raised questions among investors about a potential trade deal between the two countries.
Impact of GST Reforms Diminished
In early September, the stock market gained significant momentum due to expectations of the GST Council meeting and a reduction in tax slabs. From September 2 to September 18, the Sensex rose by 3.56% and the Nifty by 3.43%. Investors reaped substantial profits during this rally. However, due to the visa hike and trade tensions, this momentum could not be sustained, and half of the gains were wiped out.
Pressure on IT Stocks
Shares of major Indian IT companies like TCS, Infosys, Wipro, Tech Mahindra, and HCL Tech are continuously declining. The increase in visa fees will lead to higher costs for these companies, which could impact their earnings. This is why investors have started booking profits in IT stocks.
The biggest reason for the market's decline is the withdrawal of funds by foreign investors. So far in September, foreign investors have pulled out ₹11,582 crore from the stock market. Meanwhile, this year, a total of ₹1,42,217 crore has exited the capital market. Continuous selling by foreign investors has made it difficult to maintain stability in the market.
Rupee at Record Low
The rupee is continuously weakening against the dollar. The current level has reached 88.75, and it is apprehended that it might soon cross the 89 and 90 levels. This year, the rupee has depreciated by over 5%. A weaker rupee directly impacts foreign investment and imports, further increasing pressure on the market.
Rise in Dollar and Crude Oil
In recent days, the Dollar Index has shown improvement. Over the past five trading days, it has gained 0.50%, and over three months, it has risen by 0.70%. A ber dollar prompts investors to withdraw money from emerging markets. On the other hand, crude oil prices in the international market have again risen close to $70 per barrel. Increasing tensions in the Middle East have pushed oil prices higher. This situation poses further challenges for an importing country like India.
The stock market had seen a rally after the GST reforms. However, investors subsequently began profit-booking. Ongoing global trade and geopolitical tensions further fueled this profit-booking. Policy changes in Europe and the US are also negatively impacting the market.
Heavy Losses for Investors
Investors have suffered a major setback in the last four trading days. On September 18, BSE's market cap was ₹4,65,73,486.22 crore. By September 24, it had decreased to ₹4,60,56,946.88 crore. This means investors incurred a loss of ₹5,16,539.34 crore, whereas after the GST reforms, investors had gained ₹12 lakh crore.
