Indian equity markets closed lower for the third straight session, reflecting rising nervousness among investors over foreign institutional outflows and fresh concerns surrounding H-1B visa restrictions in the United States.

The BSE Sensex slipped by nearly 400 points, while the NSE Nifty ended below the 24,000 mark, marking a weak start to the week. Market sentiment remained fragile as heavy selling pressure was seen across IT, banking, and metal stocks.

🔻 FII Outflows Pressure Markets

Data from stock exchanges showed that Foreign Institutional Investors (FIIs) have been net sellers for several sessions in a row, pulling out significant amounts from Indian equities. Analysts attribute this to:

A strengthening US dollar

Rising bond yields in the US

Global investors shifting capital towards safer assets

This consistent selling weighed heavily on benchmark indices, making it harder for domestic inflows to cushion the fall.

💻 IT Sector Hit by H-1B Visa Worries

The IT sector bore the brunt of today’s decline, with leading stocks like Infosys, TCS, Wipro, and HCL Tech witnessing sharp selling. Renewed speculation about tightened H-1B visa norms in the US has raised concerns over the earnings outlook of Indian software exporters, as they depend heavily on overseas markets for revenue.

Market experts noted that any restrictions on work visas could directly hurt the business models of IT giants, making investors cautious.

📊 Broader Market Performance

Sensex closed around 78,600, down 0.5%.

Nifty50 ended near 23,950, falling by 120 points.

The Nifty IT index dropped over 2%, leading the losses.

Broader markets also remained under pressure, with mid-cap and small-cap indices ending in the red. 

🌍 Global Cues Add to Weakness

Global equity trends were also unsupportive. Asian markets traded mixed, while European stocks opened weak amid uncertainty over US monetary policy and geopolitical tensions. Rising crude oil prices further dampened investor confidence. 

📈 Expert View

Market strategists believe the correction could continue in the near term as FIIs remain in selling mode. However, they also pointed out that domestic fundamentals remain strong, with steady GDP growth and resilient corporate earnings, which could provide a floor to the downside.

“Short-term volatility is likely to persist due to global headwinds, but long-term investors should use dips as an opportunity,” said a leading market analyst.

🔮 Outlook Ahead

Investors are now closely watching:

The upcoming US Fed commentary on interest rates

Domestic Q2 earnings season

Policy updates on immigration and H-1B visas in the US

Until clarity emerges, experts suggest caution, especially in IT and banking sectors, while defensive bets like FMCG and pharma may offer some stability.