The Indian stock market experienced a notable downturn today, with both the Sensex and Nifty indices falling sharply. The BSE Sensex declined by approximately 600 points, while the NSE Nifty approached the 24,900 level. This decline interrupts a six-day rally that was fueled by optimism surrounding Goods and Services Tax (GST) reforms. Several factors appear to be contributing to this market correction:

1. Profit Booking: After a sustained uptrend in the past few trading sessions, some investors are opting to book profits, leading to selling pressure. The market struggled to maintain its position above the 25,000 level on the Nifty, triggering further selling as it dipped below this mark.

2. Global Cues and US Federal Reserve Chair's Speech: The Indian market is taking cues from muted global markets. Investors are awaiting the US Federal Reserve Chair Jerome Powell's speech at the annual economic symposium at Jackson Hole. Powell's remarks are expected to provide insights into the Federal Reserve's policy outlook, which could influence investor sentiment and market direction. The rupee also weakened against the US dollar ahead of Powell's speech, reflecting a cautious market sentiment.

3. Sectoral Weakness: Certain sectors are underperforming, contributing to the overall market decline. Nifty FMCG, Metal, Private Bank, and Oil & Gas indices are among the top laggards. Financial stocks, in particular, have experienced losses, with heavyweights like HDFC Bank and ICICI Bank slipping.

4. Foreign Investor Activity: Heavy selling by foreign investors has particularly affected large-cap stocks, contributing to the market's decline.

5. Cautious Stance after Rally: The market had been on an uptrend, driven by optimism around GST reforms and S\&P's sovereign rating upgrade. After this rally, investors are adopting a more cautious stance, leading to the current correction.

While the Sensex and Nifty experienced declines, the broader market showed mixed performance. The Nifty MidCap100 and Nifty Smallcap100 indices traded flat with marginal gains. This suggests that the market's weakness is concentrated in specific sectors and larger stocks.