The Deutsche Bank in its report announced a trim in the Sensex target to 27,000 from 29,000 earlier, citing global uncertainty amid 'Brexit' concerns.
The bank said that as the long and complicated process of political and economic separation of the UK from the EU unfolds, financial market volatility will remain elevated.
The brokerage has advised clients to invest in sectors that have the least exposure to global macro.
It further added that the only sector to face the exception is pharmaceuticals as a strong dollar will benefit companies having a sizeable exposure to the US market.
On the other hand, domestic sectors, utilities, tractors, oil marketing companies, cement and consumer staples stand out.
"Among stocks we see Sun Pharma, Lupin, Aurobindo, ITC, Hindustan Unilever, Hero Motocorp emerging as stocks that appear most insulated in the current environment," said the note by Duetsche Bank.