In mid-afternoon trading, Indian equity benchmarks faced significant losses, with the S&P BSE Sensex declining 717.65 points (0.92%) to 77,780.63 and the Nifty 50 index falling 160.50 points (0.68%) to 24,210.15. The decline is attributed to rising crude oil prices, which have surpassed $100 per barrel, and investor caution regarding the reopening of the Strait of Hormuz. The PSU Bank index dropped 2.25% after a recent rally, with major banks like Union Bank of India and Canara Bank experiencing notable losses. The broader market reflected negative sentiment, with more shares declining than rising. Additionally, HSBC downgraded Indian equities to underweight, citing concerns over inflation and potential earnings downgrades due to higher oil prices. The foreign exchange market also showed a weakening rupee, trading at 94.1125 against the dollar. Amid these challenges, selective investment opportunities remain, but the overall market outlook appears weakened.