Puneet Wadhwa

The selling pressure, in fact, has intensified in recent months. After offloading equities worth ₹35,861 crore in September, FPIs sold another ₹47,417 crore through October 12.

WTI crude prices, which are unusually low versus Brent because of high US-Europe shipping costs, Goldman Sachs' analysts said, are likely to average $81 in December 2026 and $73 in 2027.

The more important signal from here will be the RBI's forward guidance, analysts said, and whether this marks the beginning of a broader tightening cycle.

The US 10-year Treasury yield has climbed to 5.32 per cent from 4.15 per cent at the end of 2025, a rise of 117 basis points (bps) so far in 2026. Brent crude oil, meanwhile, is testing $100/bbl mark.

Tiwari says a sustained rise in crude oil prices could have implications for inflation, the fiscal position and corporate margins, and could consequently weigh on the broader earnings outlook.

Over the next 12 months, the Nifty is likely to remain within a fairly narrow range - perhaps it can be plus or minus 5 per cent from the current levels, Bhasin said.

Going ahead, analysts suggest investors stick to domestic economy-focused sectors as the geopolitical situation still warrants caution.

The key concern for the investors in mega issues, according to G Chokkalingam, founder and head of research at Equinomics Research, is how the issue is priced.

Earlier, in the first nine months of the calendar year 2011, the BSE Sensex and Nifty had plunged 19.8 per cent and 18.9 per cent, respectively.

The index has witnessed a sharper fall in September compared to the Nifty 50, which declined 6 per cent, and the Nifty Smallcap 250 that slipped 3.5 per cent.

From a bottom-up perspective, there are more opportunities across the market given the challenging period that the market and economy have been through over the past two years, said Vetri Subramaniam.

Beyond February 2027, Nomura expects the probability of further rate increases to diminish, citing the potential for a slowdown in consumption.

At their target price, Macquarie said, the NSE stock would trade at a 2.5x PEG, broadly in line with global peers, suggesting the premium is justified on a growth-adjusted basis.

With clear signs of an FY27 earnings revival, a stable INR and an anticipated dovish Fed, make case for an attractive FII entry point, said Anuj Kapoor of JM Financial.

"Several stocks from a "popular" sector can enter the index simultaneously, while sectors that are out of favour may become under-represented," the report said.

Another issue Bernstein highlighted was the nature of India's large-cap companies, which it believes represents a 'bygone economic era'.

Over a five- or 10-year view, if I were an Indian mutual fund investor, it makes sense to allocate half of your inflows into small- and mid-cap funds, Wood said.

For the first time since the US-Iran war started in February 2026, S&P Global Energy does not project West Asian crude oil production to return to prewar levels by the end of 2027

Beyond the core earnings trajectory, clarity on the tenure and succession plans of chief executives at large financial institutions will also be important for the sector, analysts said.

North American demand, according to the report, was relatively modest early in the month before accelerating sharply during the week of 17 August when funds added roughly $4 billion.