Indian Stock Markets Drop Amid Early 2026 Correction

Indian stock markets have been falling recently, with major indices like the BSE Sensex and Nifty50 dropping more than 4.5% from their 52-week highs just five weeks ago. Since the beginning of 2026, the main stock indices have already dropped about 4.5%.

The broader market has been under even more pressure. The BSE midcap and smallcap indices are down 6% and 14% from their 52-week highs, and have dropped about 7% since the start of the year. Many individual stocks are also struggling, with several entering a bear phase early in 2026.

Experts say the market is now in a corrective or sideways phase. Nifty50 is testing an important support level around 25,500-25,300. Bulls need to hold this level to prevent further falls. If the index breaks below this support, it could fall toward 25,100. On the other hand, the market may gain strength only if it rises above 25,900, according to a report by Emkay Global.

Investors are advised to watch key support and resistance levels carefully and stay cautious during this period of market correction.