The Indian markets are currently experiencing their longest losing streak in five months, with a decline of over 10% from September highs. This downturn is believed to be caused by disappointing Q2 earnings, foreign outflows linked to a recovering Chinese economy, and heightened global tensions, particularly following Ukraine's missile strikes on Russian territory.

The geopolitical landscape is further complicated by the anticipated policy shifts under President-elect Trump, who is expected to favor negotiations with Russia. Domestically, India Inc is facing significant earnings downgrades, the steepest since 2020, while inflation has surpassed the Reserve Bank of India's comfort zone. Foreign investors are retreating as the dollar remains at a one-year high, driven by Trump’s fiscal policies that may fuel inflation and keep the Federal Reserve cautious about rate cuts.

The combination of rising treasury yields and ongoing Russia-Ukraine tensions presents formidable challenges for a potential bull market revival on Dalal Street, with bears currently dominating the market sentiment.