Sensex, Nifty Slip as US Visa Concerns and High Valuations Hit IT Stocks

Indian equity markets opened on a weaker footing on Wednesday as concerns over changes to U.S. visa rules and stretched valuations weighed on investor sentiment. The benchmark Sensex and Nifty slipped in early trade, led by heavy selling in information technology (IT) stocks. Market participants pointed out that Indian IT companies remain heavily dependent on the U.S. for a large share of their revenue. Any tightening or changes in U.S. immigration and work visa policies can increase compliance costs, delay project execution, and disrupt talent deployment on client sites. This uncertainty put pressure on major IT players such as TCS, Infosys, Wipro, and HCL Tech. The broader market also faced headwinds from mounting concerns about valuations. After months of a strong rally, small- and mid-cap stocks have reached elevated price-to-earnings levels, prompting investors to book profits and rotate into safer, large-cap counters. Analysts warn that while the long-term growth story of Indian equities remains intact, a near-term consolidation is likely as investors reassess risk and wait for more clarity on policy developments. Market strategists advise investors to adopt a selective approach, focusing on companies with robust balance sheets and sustainable earnings growth. Clarity on the U.S. visa front and a cooling in valuations could provide the next set of triggers for market direction. - MarketForesee Research Desk ------------------------------------------------------------------------------------------------------------------------ Indian Stock Market | Sensex | Nifty | US Visa Rules | IT Stocks | Market Valuations | Small Cap | Mid Cap | TCS | Infosys | Wipro | HCL Tech | Profit Booking | Market Outlook