Nifty Metal led the losses, falling around 1 percent. Nifty Pharma, Infra and IT indices were also trading with losses. On the flipside, gains in Nifty PSU Bank, Auto, Bank, Energy and FMCG indices capped losses for the headline indices.
“The US 10-year moving up is definitely a headwind to all the risk assets globally. Within that emerging market spectrum, we believe India is relatively well-placed and that is where we believe the next few months are going to be challenging and this market can correct down but that is part of the equity game.”
Imminent risks for the equity market could arise from the movement of oil prices, because of our import dependency and its consequent impact on inflation, says Raghvendra Nath of Ladderup Wealth.
Uneven distribution of monsoon will have an impact on agriculture and hence government may have to do an extra bit to support the rural economy, says Hemant Kanawala of Kotak Life.