FX.co ★ Tech Sector Drags Indian Markets Lower

The BSE Sensex experienced a decline of 170 points, or 0.2%, settling at 82,456 during Monday's morning trading session, continuing the downturn observed on the previous trading day. This slump was notably driven by a downturn in the technology sector. Tech stocks took a hit, dropping by 2.4% following the introduction of a USD 100,000 fee on new H-1B visa applications by US President Trump. This new policy poses a challenge to the sector's traditional practice of rotating skilled professionals into the United States. The decrease was predominantly led by Tech Mahindra, which fell by 3.8%, followed by TCS, down 2.3%, Infosys, slipping 1.8%, and HCL Tech, which declined by 1.7%. Investors are also focused on upcoming economic data, eagerly anticipating the release of India’s PMI figures on Tuesday alongside several significant US economic indicators and the FOMC meeting minutes expected later this week. Nevertheless, Friday's positive performance on Wall Street helped mitigate further losses, buoyed by robust corporate earnings reports. Investor sentiment was also boosted by optimism surrounding the ongoing US-India trade discussions, with India's Trade Minister, Piyush Goyal, scheduled to travel to Washington today to progress a long-standing trade agreement.