Indian equity markets have witnessed a sharp sell-off in the first week of 2026, with the Sensex falling over 2,200 points and the Nifty down around 2.5%. Market participants remain cautious amid global uncertainties and expected news flow over the weekend. According to Prashanth Tapse , Sr VP Research Analyst ,Mehta Equitiess, the downside from current levels may be limited, and greater clarity could emerge once key global developments unfold. The expert expects markets to stabilise in the coming week as uncertainty eases and investors assess fresh cues, particularly from global headlines and macro developments.