TCS Hits Four-Year Low Amid US H-1B Visa Fee Hike, BSE Overtakes NSE in Expiry Turnover

Through its regulation of options trading, the Bombay Stock Exchange (BSE) has made significant progress against its larger competitor, the National Stock Exchange (NSE). Since July, the BSE has captured over half of the premium turnover on expiry days, a notable increase from just 35% in April. This change followed the BSE’s decision to move its contracts to Thursdays, a day that the NSE had traditionally dominated.

Traders have increasingly treated Sensex options as “event contracts,” providing BSE with traction it has rarely enjoyed in derivatives trading. Analysts observe that NSE still controls the majority of the total derivatives business, but its dominance during expiry days has decreased in the turnover. The question now is how BSE can maintain this momentum over the coming months.

NSE Crosses 120 Million Users Before IPO

While BSE has made progress in derivatives, the NSE remains far ahead in terms of scale and retail participation. As of September 23, the exchange recorded more than 120 million unique registered investors, surpassing earlier milestones at a rapid pace. For comparison, it took the NSE 25 years to reach 40 million investors by March 2021; however, the next 80 million were added in less than five years.

A younger population has driven this surge. The average age of NSE investors has also declined to 33, compared to 38 in 2019, indicating that younger retail players are influencing the Indian equity markets. This growth follows as NSE prepares for its initial public offering, which is expected to attract a considerable number of investors both locally and internationally.

HSBC Signals Optimism for Indian Equities

The growing investor base and reduced valuations in India have attracted renewed interest among global analysts. Recently, HSBC became overweight on Indian equities, arguing that India will now look attractive compared to other Asian markets. The bank pointed out that Indian and Chinese equities have the potential to rise simultaneously because domestic investors primarily drive both markets and are less dependent on foreign capital flows.

Despite risks such as earnings downgrades and tariff pressures, HSBC believes much of the potential downside has already been factored into prices. The bank’s view contrasts with earlier assumptions that Indian and Chinese stocks move inversely, suggesting broader room for parallel growth across the two economies.

TCS Hit by H-1B Visa Fee Hike

Tata Consultancy Services (TCS) has emerged as one of the hardest-hit firms in India’s IT sector following the U.S. government's announcement of a steep hike in H-1B visa fees. The new policy introduces an annual cost of $100,000 per application, effective September 21, 2025, compared to the earlier range of $2,000 to $5,000. TCS, which received more than 5,500 H-1B approvals this year, faces hundreds of millions of dollars in additional costs if it maintains its current application levels.

The news caused a sudden selloff of IT stocks. The TCS stock crashed as low as ₹2905.40, the lowest in the last four years, and the market capitalization lost to the tune of over 4 lakh crore in 2025. The broader Nifty IT index also declined by 2.45% on Friday, and the index has recorded losses of more than 20% year-to-date. Analysts caution that the rising cost of visas, client spending restraint, and low global demand will probably sour the growth outlooks of Indian IT companies in the near term.

Also Read: Accenture Results Spark Selloff; TCS, Infosys, Wipro Slump as Nifty IT Index Falls 7.4% in a Week