Indian benchmark shares to open flat on caution due to US visa concerns

India’s equity benchmarks are likely to open little changed on Wednesday on caution due to U.S. H-1B visa concerns, with persistent foreign outflows expected to neutralise prospects of a revival in consumption demand driven by the festive season.

Gift Nifty futures were trading at 25,191 points as of 07:59 a.m. IST, indicating that the benchmark Nifty 50 will open near Tuesday’s close of 25,169.5.

The 50-stock index has fallen 1% in the last three sessions, with the selling this week driven by information technology stocks after the U.S. imposed $100,000 fee for new H-1B visa applications.

On Tuesday, the U.S. released a proposal aimed at reworking the H-1B visa selection process to favour higher-skilled and better-paid workers.

Indians made up 71% of approved H-1B beneficiaries last year.

Foreign portfolio investors (FPIs) led the selling on Tuesday, offloading shares worth 35.51 billion rupees ($399.94 million), as per provisional data.

This was their biggest single-day sale in India in September.

“Persistent foreign fund outflows, a weak rupee, and stretched valuations are keeping investor sentiment cautious,” said Ponmudi R, chief executive officer of Enrich Money.

“Adding to the volatility are global headwinds—from U.S. tariff threats to visa fee hikes, which are putting additional pressure on the IT stocks and other export-linked sectors.”

However, an expected pickup in growth from tax reforms and the recent Goods and Services Tax cuts that came into effect on Monday supported investor sentiment, he said.