Financial stocks pulled India’s main indexes higher on Tuesday as investors worried that moves to tighten U.S. visa controls would hurt the country’s big IT outsourcers.
The Nifty banking index and finance index rose nearly 1% each, while a more than 1% fall in shares of heavyweights Infosys Ltd and Wipro Ltd dragged down the information technology index by 0.5%.
Trump suspended the entry into the United States of certain foreign workers on Monday, a move the White House said would help the coronavirus-battered economy.
The move could hit Indian IT outsourcing companies, which depend on H-1B visas to send engineers and developers to work with their clients in the United States, its biggest market.
Foreign institutional investors have been net buyers for the past few sessions, National Stock Exchange data showed, suggesting more global investors were pushing some of the huge surplus of cash pumped into the banking system by central banks to buy back into Mumbai.
The NSE Nifty 50 index rose 0.6% at 10,370 and the benchmark S&P BSE Sensex was up 0.52% at 35,091.42.
Meanwhile, Asian shares see-sawed in a wild ride on Tuesday following confusing statements from the White House over the U.S.-China trade deal, with President Donald Trump later clarifying the pact was “fully intact.”