New Delhi, Oct. 19 -- Foreign investor outflows and rising global bond yields are likely to remain key headwinds for Indian markets, even as a recovery in corporate earnings is expected to drive equity returns in the near term, HSBC Mutual Fund said in its equity and debt market reviews.

The fund house said Indian equities faced a broad-based correction in September amid rising crude oil prices, renewed geopolitical tensions in the Middle East and tighter monetary policies across major economies. It expects earnings growth to play a central role in determining market performance amid continued global uncertainty.

The Nifty 50 declined 6 per cent in September, while the Nifty Midcap 150 fell 7.1 per cent and the Nifty Smallcap 250 droppe...