The market is down today primarily due to panic selling in IT sector stocks triggered by U.S. President Donald Trump's decision to impose a steep $100,000 fee on new H-1B visa applications. This move raised concerns about profitability for Indian IT outsourcing firms, which caused significant declines in IT stocks such as Tech Mahindra, Tata Consultancy Services, Infosys, and HCL Tech. Additionally, a weaker Indian rupee and stronger U.S. dollar weighed on market sentiment. The broader Indian market indices like Nifty50 and BSE Sensex fell around 0.5%, with widespread selling pressure across sectors except for a few gainers like Adani Enterprises and Bajaj Finance. This sharp correction follows a recent rally and is seen as a normal healthy pullback amid ongoing geopolitical and economic uncertainties.

In the U.S., market futures indicated a slight decline as investors awaited further cues from Federal Reserve officials on potential additional interest rate cuts. While the major U.S. indices had recently reached record highs post the Fed’s rate cut, traders remain cautious, reflecting a need for fresh positive catalysts to maintain momentum.

Thus, the main factors behind today's market downturn are the U.S. H-1B visa fee hike impacting IT stocks and cautious investor sentiment ahead of key Federal Reserve remarks.