RBI May Issue Directives to Improve Bank Board Governance

"Domestic equities are like a man having average temperature as one leg is in cold water and the other leg is in hot water.

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Domestic factors support the current valuation for long-term investors expecting moderate returns. Global factors from Trump policy to oil prices are boiling hot," said Nilesh Shah, managing director of Kotak Mahindra AMC.

Shah said India has sufficient foreign exchange reserves to withstand higher oil prices, but advised traders to remain cautious and consider buying the dip. Experts said investors could take cues from the oil markets.

"Some recovery can also occur due to DII buying. However, the magnitude of oil's impact on the global economy and markets has come down over the years. The intensity of oil in global GDP growth is decreasing due to the rise of the service sector and growth of renewable energy," said Chokkalingam G, founder and head of research at Equinomics Research.

Ross Maxwell, global strategy lead at VT Markets, said, "Oil is likely to spike, which will cause further concerns on the impact this may have on inflation and the global economy as investors will look to cycle out into safe haven assets such as gold and Japanese yen."