Mumbai, May 8 -- The domestic equity benchmarks traded with modest losses in morning trade, as escalating US-Iran tensions near the Strait of Hormuz dampened global risk sentiment and triggered caution across Asian markets. Persistent foreign fund outflows, elevated crude oil prices and rising geopolitical uncertainty further weighed on investor confidence, overshadowing optimism about a medium-term recovery in domestic equities.

The Nifty slipped below the 24,250 mark amid broad-based selling pressure. Private bank stocks witnessed profit booking after advancing in the previous two consecutive trading sessions.

At 10:30 IST, the barometer index, the S&P BSE Sensex slipped 305.66 points or 0.40% to 77,547.99. The Nifty 50 index declined...