On Tuesday, Indian equity benchmarks fell for the second straight session, with the Sensex and Nifty closing at their lowest levels since mid-June.
Rising crude oil prices and continued geopolitical uncertainty kept investors cautious.
The Sensex declined 555.23 points, or 0.73 per cent, to 75,577.58. The Nifty dropped 144.05 points, or 0.61 per cent, to 23,635.10.
Banking and financial stocks led the decline. SBI Life Insurance Company, ICICI Bank and Axis Bank recorded the biggest losses on the Nifty.
Broader markets performed better than the benchmark indices. The Nifty MidCap index rose 0.21 per cent, while the Nifty SmallCap index gained 0.17 per cent.
The Nifty Private Bank and Nifty Financial Services indices faced the strongest selling pressure. Pharma and healthcare stocks, however, outperformed and offered some support.
Market experts identified elevated crude oil prices and geopolitical uncertainty as key risks for equities. They further warned that the strong performance of mid- and small-cap stocks over the past five to six months could prove difficult to sustain.
Experts suggested greater exposure to large-cap stocks and non-equity ETFs from a strategic perspective. They further identified Healthcare, Telecom, FMCG, Diversified businesses and IT as areas that could continue to offer portfolio support.
Short-term investors may consider booking partial profits as volatility remains elevated.
The Rupee weakened 0.29 per cent to 94.81 against the dollar. The dollar traded near 98.95, while Brent crude remained elevated at around $97 a barrel.
Also Read: India’s Economy Posts Robust Growth Despite Mideast Energy Shock
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