Indian benchmarks to open flat as US trade optimism balances visa worries

India’s equity benchmarks are set to open little changed on Tuesday, as optimism over progress in trade talks with the United States helped balance concerns about steep H-1B visa fees.

Gift Nifty futures were trading at 25,256.5 points as of 07:55 a.m. IST, indicating that the benchmark Nifty 50 will open near Monday’s close of 25,202.35.

On Monday, both the Nifty 50 and the BSE Sensex fell, dragged by major information technology stocks that together lost about $10 billion in market value after Washington announced a $100,000 fee on new H-1B applications.

Sentiment improved, however, after U.S. Secretary of State Marco Rubio underscored the importance of ties with India during talks with External Affairs Minister Subrahmanyam Jaishankar on the sidelines of the UN General Assembly in New York.

“Indian equities are likely to consolidate after the recent run-up and Monday’s dip, with focus on Commerce Minister Piyush Goyal’s US visit for trade negotiations,” said Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services.

Analysts also noted that the goods and services tax (GST) cuts, effective from Monday, could cushion some of the worries linked to trade and visa policy.

Foreign portfolio investors (FPI) turned net sellers of Indian shares after two sessions of buying on Monday, offloading stocks worth 29.1 billion rupees (about $330 million).

Domestic investors remained buyers for the 19th straight session, purchasing stocks worth 21.05 billion rupees, according to provisional data from the NSE.