NEW DELHI– Indian benchmark indices closed lower on Monday as investors engaged in short-term profit booking and reacted to sector-specific concerns following last week’s rally.
Technology stocks led the slide, dropping nearly 2 percent after Washington announced a $100,000 fee for new H-1B visa applications. The move rattled confidence in India’s $283 billion IT outsourcing industry, which relies heavily on skilled visas for access to U.S. markets.
Pharmaceutical shares also declined, ending a two-day winning streak.
Despite the sell-off, domestic indicators remained broadly supportive. A healthy monsoon, steady credit growth, and easing inflation helped cushion against a deeper downturn.
Attention now shifts to Washington, where Commerce and Industry Minister Piyush Goyal is leading a high-level delegation in a fresh push to finalize a Bilateral Trade Agreement (BTA).
“The delegation plans to take forward the discussions with a view to achieving early conclusion of a mutually beneficial Trade Agreement,” the Ministry of Commerce said in a statement.
Talks between New Delhi and Washington have been ongoing since February. Negotiations hit a snag in August when the U.S. postponed a planned sixth round of meetings in India. But a September 16 meeting in New Delhi between Brendan Lynch, U.S. assistant trade representative for South and Central Asia, and India’s chief negotiator Rajesh Agrawal helped reset the tone.
“During the last visit of the team of officials from the office of the United States Trade Representative to India on September 16, 2025, positive discussions were held on various aspects of the trade deal, and it was decided to intensify efforts in this regard,” the ministry said.
Optimism is growing that an agreement could be sealed before winter, raising hopes for reduced reciprocal duties and bolstering sentiment among export-driven sectors.
Meanwhile, External Affairs Minister S. Jaishankar is in New York for the United Nations General Assembly and will meet U.S. Secretary of State Marco Rubio on Monday. The newly announced H-1B visa fee is expected to feature prominently in their talks.
Earlier this month, President Donald Trump and Prime Minister Narendra Modi exchanged pleasantries on social media, signaling goodwill as trade discussions gain momentum. (Source: IANS)
