New Delhi, Sep 20 (IANS): BSE Sensex is now down more than 800 points and has fallen below the 67k mark.

HDFC Bank is down more than 3 per cent, JSW Steel is down more than 2 per cent.

Despite touching all time highs, the Nifty ended marginally down over the past five days, says Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services.

Valuations are increasingly getting a bit uncomfortable especially within the small and mid-cap space, he added.

The frontline market still seems one where buy on dips can be the preferred strategy. Consumer space, metals and select large cap banks can be the drivers of keeping the Nifty buoyant.

China on the other hand keeps taking measures to resurrect its economy, the latest being a 25 bps cut in CRR in an attempt to increase the system wide liquidity. Driven by potential rebound in China, lower SPR and continued production cuts at Saudi has ensured oil is now nearing $100/bbl, he said.

If Chinese economy surprises positively there is a high probability that oil will breach the physiological $100/bbl mark which will be viewed negatively for Indian equities especially going into an election year, he added.

On the US front, all eyes will be on the US FOMC meeting tonight. Any soft guidance can potentially drive risk sentiment globally and would be viewed as one that can be taken as slightly long term in nature, he said.