Closing Bell: Markets Slide as H-1B Visa Shock Hits Sentiment; Nifty Ends at 25,200, Sensex Drops 466 Points, IT Sector Bleeds

Indian equity markets closed sharply lower on Monday, September 22, as renewed concerns over U.S. H-1B visa restrictions triggered a sell-off in IT stocks, dragging benchmark indices into the red. The Nifty 50 ended the session at 25,200, down 141 points, while the Sensex shed 466 points to close at 83,720. The broader market also felt the heat, with midcap and smallcap indices under pressure.

IT Sector Takes the Biggest Hit

The Information Technology index plunged over 3.5 percent, making it the worst-performing sector of the day. Stocks like Infosys, TCS, Wipro, and HCL Tech saw heavy selling as traders reacted to President Trump’s announcement of increased scrutiny and fee hikes for H-1B visa renewals. The move is expected to impact Indian IT firms’ margins and project pipelines, especially those with significant U.S. exposure.

Infosys fell 4.2 percent, TCS dropped 3.8 percent, and Wipro declined by 3.5 percent. Analysts believe the sentiment may remain weak in the short term until there’s clarity on visa processing timelines and cost implications.

Broader Market Trends

  • Banking and Auto stocks showed resilience, with ICICI Bank and Bajaj Auto posting modest gains.
  • Pharma and FMCG sectors remained flat, offering little support to the falling indices.
  • Adani Group stocks continued their upward momentum, with Adani Power hitting a 15-month high post its stock split.

Global Cues and FII Activity

Global markets were mixed, with U.S. futures trading flat and European indices showing mild gains. Foreign Institutional Investors (FIIs) turned net sellers, offloading ₹1,200 crore worth of equities, while Domestic Institutional Investors (DIIs) provided some cushion with ₹950 crore in net buying.

Technical View

The Nifty has broken below its immediate support of 25,300, and analysts expect further downside toward 25,000 if selling persists. The index formed a bearish candle on the daily chart, indicating weakness. Traders are advised to remain cautious and avoid aggressive long positions until stability returns.

Strategic Insight for Traders and Investors

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Adani Group Stocks Rally for Second Straight Day; Adani Power Hits 15-Month High Amid Stock Split and Regulatory Clarity

Adani Group stocks extended their gains for the second consecutive trading session, with Adani Power leading the rally by hitting a fresh 15-month high. The surge is driven by a combination of positive developments, including a strategic stock split, regulatory clean-up, and bullish brokerage coverage.

Adani Power Surges Post Stock Split

Adani Power jumped over 18 percent in early trade, reaching ₹168.80 after its 1:5 stock split came into effect. The move reduced the face value of each share from ₹10 to ₹2, increasing liquidity and making the stock more accessible to retail investors. This is the company’s first-ever stock split and is seen as a strategic effort to broaden investor participation.

Market analysts believe the split could attract a new wave of retail interest, especially as sentiment around Adani Group stocks continues to improve.

SEBI Clears Adani Group of Hindenburg Allegations

Investor confidence received a boost after SEBI cleared the Adani Group of allegations made by Hindenburg Research. The regulator found no evidence of stock manipulation or fund diversion, noting that the flagged loans had been repaid with interest before the investigation began. This regulatory clean chit has helped restore credibility and reduce uncertainty around Adani stocks.

Brokerages Turn Bullish

Global brokerage Morgan Stanley initiated coverage on Adani Power with an “overweight” rating and a target price of ₹818. The firm highlighted Adani Power’s aggressive expansion plans, aiming to grow capacity from 18,150 MW to 41.9 GW by FY32. This could potentially increase its market share in India’s thermal power segment to 15 percent.

Morgan Stanley also projected a threefold increase in Adani Power’s EBITDA by FY33, driven by new capacity additions, regulatory clarity, and improved procurement and logistics.

Broader Adani Group Performance

Other Adani stocks also posted gains. Adani Enterprises rose 3 percent, while Adani Ports climbed 1.2 percent. The overall sentiment around the group has turned bullish, supported by strong fundamentals and easing regulatory concerns.

Retail Sentiment and Market Outlook

Retail sentiment for Adani Power has shifted from neutral to bullish, with increased message volumes and positive chatter across trading platforms. The stock has already gained over 35 percent in 2025, and analysts expect further upside if macro conditions remain favorable.

Strategic Insight for Traders and Investors

For traders looking to capitalize on this momentum, it’s essential to combine technical setups with macro awareness. Stocks like Adani Power may offer short-term breakout opportunities, but disciplined risk management remains key.

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