Indian stock markets, particularly Nifty sectors like consumer durables, realty, media, and FMCG, have entered bear territory as foreign institutional investors (FIIs) increase short positions to over 2 lakh contracts, the highest since mid-October 2025. Despite this bearish trend, some sectors like PSU Bank, Metal, and Auto remain strong. The small-cap index shows signs of peak fear, suggesting potential for a rebound. With the earnings season approaching, stock-specific opportunities may arise.