New Delhi: Indian benchmark indices closed lower on September 22, as sector-specific concerns and short-term profit booking followed a recent rally.

Information technology stocks fell nearly 2 per cent after the US announced a USD 100,000 fee for new H-1B visa applications, raising worries over profitability and talent access for India’s USD 283 billion IT outsourcing sector. Pharma stocks also weighed on the market, ending a two-session winning streak.

Domestic factors remained broadly supportive, including a healthy monsoon, improving credit growth, and low inflation, which helped mitigate deeper losses.

Market watchers are hopeful of positive developments later in the day as Commerce and Industry Minister Piyush Goyal leads a high-level Indian delegation in Washington. New Delhi is intensifying efforts to finalise a Bilateral Trade Agreement (BTA) with the US, with Goyal scheduled to meet the American delegation soon.

“The delegation plans to advance discussions with a view to achieving an early conclusion of a mutually beneficial trade agreement,” a ministry statement said.

India and the US have been negotiating the BTA since February, but talks were delayed when Washington postponed its officials’ visit to India for the sixth round of negotiations, originally scheduled for August 25–29. A meeting on September 16 between US Assistant Trade Representative Brendan Lynch and India’s chief negotiator Rajesh Agrawal in New Delhi served as an icebreaker, with both sides agreeing to intensify discussions.

Expectations are high that an agreement could be finalised before winter. High-level talks are expected to boost confidence in export-oriented and multinational sectors and pave the way for potential reductions in reciprocal duties.

Meanwhile, External Affairs Minister S. Jaishankar, attending the United Nations General Assembly in New York, is set to meet US Secretary of State Marco Rubio on Monday for bilateral discussions. The USD 100,000 H-1B visa fee, which has raised concerns among Indian professionals, is expected to feature prominently in their talks.

Relations between India and the US have remained cordial, with both President Donald Trump and Prime Minister Narendra Modi exchanging pleasantries on social media earlier this month.

IANS