The Sensex and Nifty indices closed lower due to the selling off of holdings by Foreign Institutional Investors (FIIs) amidst global and domestic challenges.
Market anxiety has increased due to geopolitical tensions in the Middle East, concerns about capital outflows related to China's stimulus measures, uncertainties surrounding the upcoming US presidential election, and a slowdown indicated by the latest Q2 earnings reports.
Sanjeev Hota, VP and Head of Research at Sharekhan, believes that the current market correction was expected and could be viewed as a healthy adjustment. He is optimistic that the markets will stabilize soon and enter a phase of consolidation.