Indian stock markets opened in the green on the first trading day of the week, with the Sensex starting at 80,904 and the Nifty at 24,802. In early trade, the Sensex gained 119 points and the Nifty also remained in positive territory. However, FPIs have sold shares worth a hefty Rs 12,257 crore in the first week of September. Meanwhile, the HIRE Act 2025 from the US could increase pressure on Indian IT companies.
Stock Market Today: On Monday, domestic stock markets opened in the green, with the BSE Sensex starting at 80,904 and the NSE Nifty at 24,802. In early trade, the Sensex was trading up by 119 points at 80,824, and the Nifty was at 24,763. However, Foreign Portfolio Investors (FPIs) sold shares worth Rs 12,257 crore in the first week of September, putting pressure on the market. Meanwhile, the HIRE Act 2025, introduced in the US Senate, is a cause for concern for Indian IT companies, as it could directly impact outsourcing.
Initial Movement of Sensex-Nifty
The BSE Sensex opened at 80,904.40 points, compared to its previous closing of 80,710.76 points. In early trade, it reached 80,824 with a gain of 119 points. Similarly, the NSE Nifty opened at the 24,802.60 level. As of the time of reporting, it was trading at 24,763 points with a gain of 22 points.
Most Nifty sectoral indices were trading in the green. Only the Nifty FMCG, Nifty Alpha 50, and Nifty Smallcap 100 indices were in the red.
Last Week's Performance
The market experienced volatility on Friday. The Sensex closed marginally lower by 7.25 points at 80,710.76. The Nifty, on the other hand, closed with a gain of 6.70 points at 24,741. Overall, the week ended on a flat note.
Pressure from FPI Selling
In the first week of September 2025, Foreign Portfolio Investors (FPIs) made a significant withdrawal of Rs 12,257 crore from the Indian stock market. This amount is equivalent to approximately $1.4 billion.
Experts attribute this selling pressure to a strengthening dollar, fears of tariff hikes from the US, and rising geopolitical tensions.
Prior to this, FPIs had withdrawn Rs 34,990 crore in August and Rs 17,700 crore in July. According to depository data, FPIs have withdrawn Rs 1.43 lakh crore from Indian equities year-to-date in 2025. This continuous selling has kept the market's momentum under pressure.
Impact of US Legislation on Indian IT
Another significant concern for the market is the HIRE Act 2025, recently introduced in the US Senate. Many in the Indian IT sector are jokingly referring to it as the "Fire Act" because it could directly impact the outsourcing business.
Under this proposed legislation, if a US taxpayer company procures services from a foreign individual or foreign company and makes payments for them, it could be subject to an additional tax of up to 25 percent. This is being seen as an attempt to curb outsourcing.
If this law is enacted, doing business in the US, the largest market for Indian IT companies, could become more expensive. This would not only affect the companies' earnings but could also put pressure on their stocks in the stock market.
Sectors Showing Activity
In early trade, Nifty IT, Nifty Bank, and Nifty Auto indices appeared b. Shares of major IT companies saw a slight uptick, although caution persisted due to the US legislation.
Investors showed buying interest in banking and auto sector stocks. Conversely, FMCG and small-cap stocks faced selling pressure.
Investors' Focus on Global Cues
The direction of the Indian market is currently tied to global cues. The US Federal Reserve's stance on interest rates, the movement of the dollar, and geopolitical situations are influencing investor strategies.
The b start to the market on Monday has provided some relief to investors. However, the continuous selling by FPIs and the uncertainty surrounding the US legislation remain significant challenges.
