Why is the Indian stock market declining, and how should one trade at this time, when the Sensex plummets by more than 600 points?

Today's stock market: On Wednesday, January 8, the Indian stock market continued its downward trend amidst weak global cues, confirming concerns that the gains from the previous session were not sustainable. Notwithstanding numerous obstacles, market sentiment is still brittle.The Nifty 50 dropped below 23,500, and the equity benchmark Sensex plummeted more than 700 points during intraday trading.After closing at 78,199.11, the Sensex began at 78,319.45 and fell more than 700 points, or 0.90 percent, to below 77,500. After closing at 23,707.90, the Nifty 50 began at 23,746.65 and fell more than 200 points, or 0.90 percent, to 23,496.15.

Up to 2% of the BSE Midcap and Smallcap indices were broken. Due to persistent FPI selling, the Nifty 50 fluctuated between 23,500 and 24,700 levels over the past two months before reversing back to about 23,500, according to Vikas Jain, Head Research Analyst at Reliance Securities.According to Jain, the index will drop to 21,800–21,500 levels if the support zone of 23,200 is breached. These levels correspond to long-term averages, election lows, and a 23.6% retracement of the preceding move (7,511-26,277).