The Sensex and Nifty indices started off flat but later experienced a decline. The Nifty is now down 7 percent from its record high in late September.
The market is facing pressure due to various factors such as disappointing Q2 earnings, selling by Foreign Institutional Investors (FIIs), and escalating geopolitical tensions in the Middle East. Uncertainty surrounding US interest rate cuts, the upcoming US election, and rising US bond yields are also contributing to the market's struggles.
Analysts believe that if the market sees a further correction of 3-4 percent, it could lead to a total decline of around 10 percent, potentially setting the stage for a recovery.