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Indian equity markets had witnessed a bloodbath talk on Tuesday when the BSE Sensex fell by over 1500 points, wiping off more than ₹10,000 crore of the investors' wealth in just one day. Meanwhile, there was widespread panic selling during the Nifty's slump as well.

The global tensions in West Asia, surge in crude oil prices, massive withdrawal of FIIs, falling crude oil prices, and heavy US yields concerned all of the global chaos, resulting in the crash. In 2026, foreign investors kept running on a record-breaking selling spree, which further weighed on already high valuations.

The auto, metal, IT, and banking stocks were hit the worst. The market couldn't bear the global risk-off sentiment despite the decent support from the domestic institutional investors (DIIs) as reflected by SIP inflows.

The correction is a "healthy reset,” analysts warn, and there will likely be some volatility for the rest of the near term. Long-term investors are encouraged to buy dips of good-quality stocks if Indian fundamentals are still very strong.