Sensex, Nifty extend losses to log longest losing streak in six months

Indian markets fell for a fifth day on sustained FPI selling and weak IT outlook after US visa fee hike, eroding Rs 3.2 trillion in investor wealth and testing key support levels

Indian equity benchmarks extended losses for a fifth straight session on Thursday — their longest losing streak in over six months — as sustained foreign portfolio investor (FPI) selling weighed on sentiment.

 

The Sensex closed 556 points, or 0.7 per cent, lower at 81,160, while the Nifty slipped 166 points, or 0.7 per cent, to 24,891. Over the past five sessions, the indices have shed 2.2 per cent and 2.1 per cent, respectively. This marks the longest such decline for the Sensex since March 13 and for the Nifty since March 4. The correction has eroded ₹3.2 trillion in market capitalisation of BSE-listed firms, which now stands at ₹457 trillion. 

 

In the past four trading sessions, foreign funds have pulled out nearly $1 billion from domestic equities.

 

The latest bout of selling has coincided with intensifying selling pressure from FPIs after the US imposed a steep one-time fee on new H-1B visa applications, keeping investors on edge.

 

Experts said Washington’s move to levy a $100,000 fee on fresh H-1B petitions this month has hit sentiment. Indians accounted for 71 per cent of approved H-1B beneficiaries last year. With over half of India’s IT industry revenues derived from the US, the move comes as a blow to a sector already grappling with muted demand and single-digit dollar revenue growth. Analysts said that while the direct financial impact may be modest, the timing is adverse, with additional fears of potential tariffs on IT services and its second order impact has prompted profit-taking.

 

“We expect markets to remain under pressure in the near term, tracking global headwinds, macroeconomic data releases, and developments in India-US trade talks. Global commodity costs, a weakening rupee, and the tariff threat are adding to concerns on growth,” said Siddhartha Khemka, head of research (wealth management), Motilal Oswal Financial Services.

 

Investors will also be watching the September quarter earnings season to assess whether GST rate rationalisation benefits flow through to corporate profits. Analysts added that management commentaries will offer crucial insights into demand trends and margin pressures.

 

On the technical front, the Nifty is approaching key support levels. “The 100-day exponential moving average (EMA) in the 24,770-24,740 zone will act as a crucial support. A breach below 24,740 could trigger a deeper correction towards 24,600, while resistance lies at the 20-day EMA of 25,000–25,040,” said Sudeep Shah, head of technical and derivatives research, SBI Securities.

 

All sectoral indices with the exception of NSE Metal fell on Thursday. Nifty Realty and Nifty IT fell the most at 1.7 per cent and 1.3 per cent, respectively.

 

Market breadth remained weak, with 2,709 stocks declining against 1,474 advancing. TCS was the biggest drag on the Sensex, slipping 2.5 per cent, followed by Reliance Industries, which fell 0.8 per cent.