However, China bucked the regional trend. The Shanghai Composite inched up 0.2% and Hong Kong’s Hang Seng gained about 0.6%, as investors welcomed signs of fresh policy support from Beijing. Still, the overall tone across Asia remained cautious after U.S. Federal Reserve Chair Jerome Powell warned that asset valuations were running “fairly high,” raising doubts about the pace of future interest rate cuts.
Technology stocks led the decline as investor sentiment took a hit from the US government’s move to increase H-1B visa fees and tighten related policies. Analysts noted that these changes could raise costs for Indian IT companies and dampen their overseas competitiveness. Weakness in the IT pack spilled over to broader indices.
Selling pressure was also visible across auto, energy, and banking shares. Out of 16 key sectoral indices, 15 opened in the red, showing the depth of the decline. Foreign portfolio investors added to the weakness, having pulled out nearly $400 million on Tuesday — the largest single-day outflow this month.
Meanwhile, the rupee hovered close to its all-time low, trading near ₹88.85 against the US dollar, reflecting both global currency strength and domestic concerns linked to capital outflows.
Market analysts pointed to 25,100 as an immediate support level for Nifty, while resistance is seen around 25,400–25,500. For the Bank Nifty, support is expected in the 55,200–55,500 range, with upside capped unless fresh buying emerges.
Looking ahead, traders expect volatility to remain high through the day. The combination of weak global cues, heavy FPI selling, and sector-specific headwinds could keep pressure on equities unless there is a strong positive trigger, such as supportive domestic policy news or better-than-expected macro data.
Key risks include prolonged weakness in IT shares due to visa concerns, further FPI outflows, and rupee depreciation. On the other hand, opportunities may arise in defensive sectors like FMCG and select infrastructure or metal stocks, where valuations could attract bargain hunters if markets stabilise.
For now, the outlook for Wednesday’s session remains cautious, with sideways to weak trade expected unless sentiment improves in global markets.
