Markets dip over fears of policy rollback, RBI caution on equity valuations

Benchmark indices shed about 0.6%; RIL, SBI drop by over 2% each

The benchmark indices fell on Tuesday, led by losses on index heavyweights like Reliance Industries, ICICI Bank and HDFC. The Reserve Bank of India's (RBI’s) observations that equity valuations are stretched and worries over roll back of easy monetary policy also weighed on investor minds.

The benchmark Sensex fell 396 points, or 0.65 per cent, to end the session at 60,322. The Nifty, on the other hand, slipped 110 points, or 0.6 per cent, to close at 17,999.

Analysts said investors have turned cautious as inflation is surging globally due to the rise in demand and supply chain bottlenecks. The