Benchmark indices have been on a downward trend, with the Sensex dropping 500 points from its day's high and the Nifty falling below 23,400. This decline has continued for seven consecutive trading sessions, mainly due to a significant downturn in IT stocks, which has negatively affected overall market sentiment.

Investors are cautious due to concerns about a slower pace of US interest rate cuts, as indicated by recent retail sales data and rising import prices. As of 10 am, the Sensex was down 390.49 points or 0.50 percent at 77,189.82, while the Nifty decreased by 127.00 points or 0.54 percent to 23,405.70. Market breadth remained negative, with 1,131 shares advancing against 2,132 declining and 108 unchanged.

Aishvarya Dadheech from Fident Asset Management mentioned that the market sentiment is under pressure, and mid and small-cap indices may face further challenges due to inflated valuations. Investor strategy has shifted from "buy the dip" to "sell on the rise," reflecting a technical correction following a 10 percent decline from peak levels.