📉 Indian Market Brief: Downtrend Persists Amid Sectoral Sell-Off Indian benchmark indices concluded the last trading session on a **bearish note**, reflecting sustained selling pressure and heightened risk aversion. --- Key Index Performance The **Nifty 50** closed at **25,048.65**, registering a sharp decline of **0.95%** (a fall of 241.25 points) on Friday, January 23, 2026. This drop confirmed a crucial technical breach, with the index **slipping below its 200-day moving average**. Similarly, the **BSE Sensex** plunged **0.94%**, settling at **81,537.70**. The broader market mirrored this weakness, with **BSE Midcap** and **Smallcap** indices suffering even steeper losses of approximately **4%** and **6%**, respectively, over the week. --- Sectoral Weakness and Outflows The downturn was broad-based, led prominently by **Banking**, **Energy**, and **Auto** stocks. The **Nifty Bank** index was a major laggard, closing lower by **1.23%** at **58,473.10**. The **Nifty Financial Services** index also saw a significant fall of **1.21%** at **26,821.35**, with heavyweights like HDFC Bank and ICICI Bank facing pressure. The **Nifty Auto** index closed down **1.13%**, while the **Nifty Energy** index, which includes companies like Reliance Industries and ONGC, also contributed to the overall decline. **Foreign Institutional Investors (FIIs)** continued their trend of paring exposure, maintaining their status as net sellers and exacerbating the market weakness. --- Technical Indicators and Volatility The technical picture remains **cautious**. The Nifty's decline below the 200-day moving average is a classic indicator of continued weakness and potential for further downside correction toward the **25,000** psychological support mark. Market volatility, measured by the **India VIX**, surged **6.31%** to **14.19**, indicating increased market apprehension and expectation of wider daily swings. The market breadth was also poor, with a ratio of advances to declines heavily skewed toward the latter. --- Outlook and Key Triggers The immediate market outlook is one of **cautious to negative bias**. Investors are advised to be highly selective, focusing on stock-specific opportunities rather than a broad market recovery. The **Union Budget for FY27** is the next major domestic trigger, with expectations leaning towards fiscal prudence and a continued focus on capital expenditure. Globally, persistent geopolitical fragmentation and policy uncertainty add to the downside risks. While analysts foresee a potential **earnings recovery in 2026** driven by domestic strength, the current elevated Price-to-Earnings (P/E) ratio of the Nifty 50 around **21.8** suggests valuations are not cheap, necessitating a disciplined investment approach.