A well -known pattern has emerged in recent sessions, with the market not holding onto the opening profits and slipping quickly into the red, with no exception today. Both benchmark indices opened Tuesday’s session on a positive note, but they soon wiped out their initial profits amid profit discussion, which expanded their loss line to eight straight sessions, underlining the fragile sentiment of the market. The Nifty opened the session at 24,619 and touched the day’s highlight of 24,731, but could not maintain the rally, and slipped 91 points from the peak to trade at the 24,640 level. Over the past seven trading sessions, the index has crashed 3.10% and is on track to close September with a light profit. Sensex also dropped 3.34% from the month’s high. Markets start bullish, but a September sale over the September market performance can be seen in two halves. In the first half, the sentiment remained clumsy after lowering the GST rate, which increased the expectations of an economic boost of consumption and the restoration of earnings. Optimism was further supported by the resumption of trade talks between India and the US, which was strengthened by the US Federal Reserve’s first rate reduction of 2025. However, the optimism quickly faded and caused after US President Donald Trump announced a rise in the fees for new H-1B visas, which imposed an annual $ 100,000 charge. This move has increased US protectionism, which is directly aimed at India’s IT sector and threatened its $ 190 billion export industry. It was hit hard and dropped to 10%, which was transferred to the overall market sentiment. The situation was further exacerbated by the announcement of 100% rates on pharmaceutical imports, which deepened the sale and the profits made in the first half of the month. Combined with broader trading tension, these developments run the risk of reforming the US Indian economic ties and the macro-financial stability of India. Meanwhile, FPIs have continued to remain net sellers in the Indian stock market, even if they maintain a positive stance on other emerging markets. Analysts note that the lack of earnings-visibility and limited progress in US Indian trade conversations asked them to withdraw significant funds from the Indian stock market. In addition, the absence of fresh triggers and rising geopolitical tension is cautious, which drives away investors from volatile assets and pushes shares to a low of a month. On the short-term outlook weak, experts recommend watch-and-watching Amruta Shinde, technical and derivative analyst at Choice Equity Broking Private Limited, to say that, given the prevailing uncertainty and increased volatility, traders are advised to maintain a careful “waiting-and-watch” position. Amruta added that the discussion of partial gains on rallies and the deployment of tight stop loss remains wise. Fresh long positions should only be considered if the Nifty continues above the 25,000 mark. While the broader prospects remain careful, Shinde emphasized that the careful monitoring of the outbreak levels and the global market developments will be crucial in the penchant. Dr. VK Vijayakumar, investment strategist at Geojit Investments Limited, noted that the market structure looks poor in the short term. He pointed out that sustained FII sales, and the absence of positive triggers a strong recovery in the market. Any attempt to climb is the sale of pressure. Vijayakumar added that long-term investors can use this market drift to pick up potential medium to long-term winners. He emphasized that priority can be given to sectors with a strong demand and order inflow. Defense shares remain fairly valued in the light of their strong order pipeline, of high quality finances are attractive priced, and PSU banks are still trading at cheap valuations. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.
Sensex, Nifty 50 responds to GST CUT, H-1B Visa changes, trade conversations in Sept; Analysts stick to ‘wait-and-watch’ attitude
