Share Market News: Investors stunned by Trump's decision, market lost Rs 16 lakh crore in 6 days

Share Market News: Last week, the Indian stock market witnessed a sharp decline, worrying investors. The Nifty50 fell nearly 3%, while the IT index fell by 8%. Several factors contributed to this decline, including the strengthening dollar, continued outflow of foreign funds, and the US's decision to significantly increase H-1B visa fees.

Biggest Weekly Decline in Six Months

On Friday, September 26, 2025, the Indian stock market closed in the red for the sixth consecutive day. The Sensex fell 733 points to 80,426, and the Nifty50 fell 236 points to 24,655. For the week, the Sensex fell 2,199 points and the Nifty50 672 points. This was the biggest weekly decline in the last six months.

Impact of H-1B Visa Fees

US President Donald Trump has ordered an increase in H-1B visa fees to $100,000 (approximately ₹8.3 million) annually. This decision directly impacted Indian IT companies, which employ thousands of employees in the US on H-1B visas. As a result, the IT index saw a sharp decline of up to 8%. Shares of major companies such as Tech Mahindra (-9.4%), TCS (-8.5%), Wipro (-8%), and Infosys (-5.9%) suffered heavy losses.

Foreign Investor Selling and Fear of New Taxes

Foreign institutional investors (FIIs) are continuously withdrawing funds from the Indian market. Furthermore, the US has announced 100% import duties on pharmaceuticals, 50% on kitchen cabinets, 30% on furniture, and 25% on heavy trucks. These moves further increased investor concerns, leading to increased selling pressure in the market.

How much capital has been lost?

The total market capitalization of companies listed on the National Stock Exchange (NSE) declined by nearly ₹16 lakh crore this week. 43 companies in the Nifty 50 suffered losses, while some, such as Maruti (2.7%), Axis Bank (1.6%), L&T (1.5%), and Eicher Motors (1.1%), saw marginal gains.

Sector-wise Performance

• IT Sector: -8% (biggest decline)
• Realty: -6.1%
• Pharma: -5.2%
• Consumer Durables: -4.6%
• Media: -2.7%
• Small and medium-sized companies were also impacted. The Nifty Smallcap 100 fell 5.1%, and the Nifty Midcap 100 fell 2.1%.

Expert Opinion

According to HSBC Global Investment Research, the Indian stock market has lagged emerging markets by 32% since September 2024, the biggest decline since 2001. However, experts believe that current valuations have returned to historical levels, making the market attractive. Brokerage reports suggest that earnings may improve due to reduced inflation and policy support. This could increase the likelihood of foreign investors returning.