According to Piper Serica Advisors, the founder and fund manager of Abhay Agarwal, due to global uncertainties, foreign capital selling off, and rising borrowing costs, the Indian stock market may face further downward pressure.

Agarwal indicates that rising bond yields, increasing crude oil prices, and geopolitical tensions are putting additional pressure on markets, while the high valuations of small and mid-cap stocks also increase the risk of corrections.

"Until these issues are resolved, the market will continue to be in a phase of selling on rallies," he said.

He also warned that higher interest rates could damage bank profit margins, consumer spending, and demand for cars.

Agarwal indicates that, while waiting for better investment opportunities, his fund has increased its cash allocation to 30%.