New Delhi, April 7 -- Indian equity markets are entering a critical phase as global geopolitical tensions, particularly the ongoing Iran-Israel/US conflict, cloud near-term prospects despite strong domestic fundamentals, according to a recent report by Motilal Oswal Financial Services.

The report noted that while India benefits from multiple structural tailwinds, "the near-term market set-up has been vitiated by the Iran-Israel/US war," given the country's heavy dependence on energy flows through the Strait of Hormuz.

A significant portion of India's energy imports is at risk, with "35-40% of crude demand and 54% of pre-war LPG needs" passing through the region, making the economy vulnerable to disruptions.

Reflecting these headwinds, ...