Rahul Chadha, Chief Investment Officer, Mirae Asset Global Investments, said the current market activity is an impact of both domestic and global factors.

While the micros in terms of earnings are better, the macro concerns with regards to higher crude prices, current account deficit ballooning, political uncertainty is weighing on the market, said Chadha.

Talking on the consumption space, he said one has to be very selective. The house has been upbeat on some of the fast food plays, jewellery retailers etc. From the consumer discretionary, they like automobiles, be it passenger cars, tractors, also hotel industry.

Information technology is another place, where people have been hiding, he said.

What is weighing on investors' mind is what is happening in the oil and gas space – issues like oil marketing companies (OMC) not been allowed to increase diesel and petrol prices, or get their full retail fuel margins etc.

"In the last five years, India got re-rated because the idea was things would be done the right way, but if these things are unwound, then it would naturally weigh on investors’ minds and weigh on the multiple re-rating India enjoyed over the last couple of years," he added.