Indian equity markets have been on a downward trend, with the NSE Nifty 50 falling below 23,400, marking its seventh consecutive session of losses. During intraday trading, the index declined by over 130 points, while the BSE Sensex dropped around 350 points, now down more than 10% from its all-time high in late September.

Rajkumar Singhal, CEO of Quest Investment Advisors, stated that disappointing Q2 earnings and foreign institutional investor outflows have significantly contributed to the market struggles. Despite this, retail investors are reportedly increasing their positions, suggesting a potential tension in the market. Singhal mentioned that the Nifty could potentially reach the 23,000 level before stabilizing, which could present opportunities for long-term investors to acquire stocks at more attractive valuations.

The decline was worsened by a sharp drop in IT stocks and concerns about the pace of US interest rate cuts.