Indian Markets Slide as US Visa Uncertainty Hits Tech Stocks

The Indian equity markets ended lower on August 26, with the Nifty 50 declining 0.52% and the Sensex falling 0.24%. The Nifty 50 index closed at 24,207.75, down 126.80 points or 0.52%, while the BSE Sensex closed at 77,472.94, declining 183.15 points or 0.24%. Vinod Nair, Head of Research at Geojit Investments Limited, said that sectoral divergence weighed on the benchmarks, causing domestic market gains to be given up early in the day.

The IT sector was a major drag, with Nifty IT declining 1.47% due to concerns over US visa uncertainty. This weakness offset gains in banking and metal shares. On the other hand, Nifty Metal gained 1.27%, while Nifty Private Bank rose more than 1%. Vinod Nair also noted that inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks.

Vikram Kasat, Chief Business Officer - Advisory and Dealing at PL Capital, said that falling crude prices supported the market, while weakness in key sectors weighed on sentiment. He added that investors would continue to track global cues, US inflation data, crude oil movement, and FII flows, while maintaining a selective approach towards fundamentally strong stocks.