Sentiment was stimulated by renewed optimism about the resumption of the India-US trade discussions and the first reduction of the American Federal Reserve of 2025. Positive overflow of recently announced GST reforms continued to help consumption-linked sectors, while Crisil’s Prestiction of Softer Fy26-Ininftation continued RBI policy payments later this year.
However, profits were partially tempered by a mixed trend in foreign institutional investor (FII) flows.
Factors that probably influence the movement when the markets reopen this week:
1) H-1b visa costs
Markets will respond this week to the executive order of the US President Trump who imposes an annual $ 100,000 fee on H-1B-VISA, announced at the end of Friday.
2) India-US Trade Agreement
Any updates on trade negotiations in India will also be closely monitored. Export-driven sectors are already under rate-related pressure and the visa costs can further weigh on IT exporters from Services at a sensitive time for trade discussions.
3) Economic data
On the domestic front, the composite, production and services -pmi estimates of HSBC for September are planned for release on September 23, followed by bank details about loan and deposit group, and foreigners reserves on 26 September.
4) American market performance
Investors will follow the American market trends worldwide in the aftermath of the tariff reduction of the Federal Reserve.
5) Technical factors
The undertone of the market remains firmly positive, with every dip or consolidation probably healthy for the next stage of the rally.
“In deze opstelling fungeert de 25.200-25.100 zone (breakout -niveau) nu als sterke steun. Aan de andere kant is de 25.450-25.500 band, samenvallend met trendlineweerstand, de onmiddellijke hindernis, gevolgd door de juni swing high op 25.670,” zei RaJeh Bhosale, equite -technische analyse, quite -technische analyse, engelen en angel one.
“A decisive breakout outside this zone would open the path to new all-time highlights. Given that conditions and proximity to key resistance, short-term consolidation with a positive bias is likely,” he added.
6) Fii -Streams
Foreign Institutional Investors (FIIs) have largely been net sellers or inactive, which reflects caution in the midst of currency dratility and global uncertainty. However, domestic institutional investors (DIIS) have been steady buyers, in the support of market stability in the midst of FII outflows. This divergence suggests that domestic investors dampen the market, while FIIs are waiting for clearer triggers or improved currency conditions before larger investments are resumed.
7) Currency movement
Fii’s gently keeps the enhancement of the US dollar against Indian rupees. Since the start of the current financial year, the dollar has appreciated almost 3% against the rupid.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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