Amid continued pressure from tech stocks, Indian equities extended their losing streak for the fifth consecutive session on Thursday, with key frontline indices slipping below critical levels, marking their longest bearish run in the past six months.
The Nifty 50 breached the psychological 25,000 mark for the first time since September 12, settling at 24,809, and the index has lost 614 points in the last five sessions—more than half of the gains recorded following the GST reforms announced on September 3.
The recent sell-off has set the index on track to snap a three-week losing streak, and analysts see little chance of a near-term recovery amid the absence of fresh triggers and continued selling by overseas investors.
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that in the absence of fresh triggers, persistent underperformance in key sectors, coupled with continued FII outflows, is weighing on overall market sentiment.
From a technical standpoint, he said the Nifty’s breakdown below the 20 DEMA shifts immediate support to 24,750, coinciding with the 100 DEMA. He added that oversold conditions in select heavyweights may trigger a rebound, but the upside is likely to remain capped at 25,050–25,150, advising traders to monitor positions and await greater clarity before taking aggressive bets.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited, echoed the bearish outlook, saying the Nifty’s decisive breach of 25,000 and close below this level signals increased downside bias, with resistance now seen around 25,000–25,050 and support around 24,700–24,750.
Amruta also highlighted that volatility has returned to focus, with the India VIX rising about 2.16% to 10.75, indicating expectations of further swings ahead.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, added that markets are likely to remain under pressure in the near term, tracking global headwinds, macroeconomic data releases, and developments around the India–U.S. trade talks.
He noted that concerns over economic growth persist amid rising global commodity prices, a weakening rupee, and U.S. tariffs, all contributing to heightened investor caution.
IT stocks emerge as top laggards
Market sentiment turned cautious after the White House increased the fee for new H-1B visas from USD 1,000 to USD 100,000, raising concerns over higher costs and potential delays in deploying skilled workers to the U.S. Additionally, the U.S. Department of Homeland Security (DHS) proposed amendments to the existing lottery process, which triggered a sharp sell-off in tech stocks.
The visa curbs have raised concerns over potential margin pressures for Indian IT companies. The changes also dampened the sentiment of overseas investors, who were already bearish on local equities, further accelerating their selling in IT stocks. This led the Nifty IT index to drop over 5.5% in the last four days.
India’s $283 billion IT sector, which derives around 57% of its revenue from the U.S., has long benefited from U.S. work visa programs and the outsourcing of software and business services.
The visa fee hike also overshadowed the positive impact of GST rate cuts, with automobile companies reporting rising inquiries, and analysts expect the cuts across key sectors to support earnings from Q3 onwards.
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