The 'buy on dips' strategy of retail investors and DIIs is countered with the 'sell on rally' strategy of FIIs.
Sensex settled at 60,433.45, down 112.16 points or 0.19%, while the broader NSE Nifty declined 24.30 points or 0.13% to end at 18,044.25
The market breadth was positive as shares 1,674 advanced while 721 declined and 96 remained unchanged.
The correction phase is largely going to expand even post-Diwali as emerging macro challenges are posing a few serious threats to the market.
Sensex ended at 59,771.92, down 257.14 points or 0.43%, while Nifty closed 59.75 points or 0.33% lower at 17,829.20
The Nifty Metal index was shining bright as it gained 0.51% and the Nifty IT index jumped 0.49%.
The retail and DII enthusiasm is getting fundamental support from positive economic data like record GST collections, PMI at 55.9 and Q2 earnings.
October GST collection of Rs 1.3 lakh crore were the second-highest monthly collections since the introduction of the nationwide tax in 2017.
Bulls had a strong grip of the markets as 1,593 shares advanced while 536 declined and 114 remained unchanged.
The Fed will begin its two-day policy meeting on November 2 and will announce its interest rate decision on 3 November 2021.