The NSE Nifty 50 and BSE Sensex have been experiencing a downward trend, with the Nifty closing in the red for the sixth consecutive session. The Sensex has lost 2,800 points due to selling from foreign institutional investors.

Analysts believe this decline is a result of profit-taking following high valuations. The Nifty briefly dropped below the critical 23,500 mark, marking a more than 10 percent decrease from its September peak. This is the second time it has entered correction territory since the COVID-19 selloff in March 2020.

At the close, the Sensex fell by 111 points, or 0.14 percent, to settle at 77,580, while the Nifty decreased by 26 points to finish at 23,533. Despite the overall market decline, there were more advancing shares than declining shares.