NEW DELHI– Indian equity markets closed lower on Monday, weighed down by losses in IT and pharma stocks even as New Delhi pushed forward with high-level trade talks in Washington.
The benchmark indices retreated after recent gains, with information technology shares falling nearly 2 percent following the U.S. government’s announcement of a $100,000 fee on new H-1B visa applications. Analysts warned the move could erode profitability and restrict talent access for India’s $283 billion outsourcing industry. Pharma counters also weakened, snapping a two-session rally.
Domestic indicators, however, offered some cushion. A healthy monsoon, strong credit growth, and easing inflation helped prevent deeper declines.
The market’s dip came as Commerce and Industry Minister Piyush Goyal arrived in Washington for critical discussions on a long-awaited Bilateral Trade Agreement (BTA). According to the Commerce Ministry, Goyal’s delegation is seeking “early conclusion of a mutually beneficial Trade Agreement” after positive momentum from a September 16 meeting in New Delhi between Indian negotiators and U.S. officials led by Assistant Trade Representative Brendan Lynch.
Talks had stalled earlier when Washington postponed the sixth round of bilateral negotiations in late August. But recent overtures between President Donald Trump and Prime Minister Narendra Modi—who exchanged optimistic notes on social media earlier this month—have revived expectations that a deal could be finalized before winter.
A successful outcome could see reciprocal duties lowered, giving a boost to export-oriented and multinational sectors.
Meanwhile, External Affairs Minister S. Jaishankar, attending the United Nations General Assembly in New York, is scheduled to meet U.S. Secretary of State Marco Rubio on Monday. The contentious H-1B visa fee, seen as a major concern for Indian professionals, is expected to feature prominently in the discussions.
While global uncertainty continues to pressure markets, investors are watching closely to see whether diplomatic progress can help offset economic headwinds. (Source: IANS)
