New Delhi, Oct. 12 -- Indian stock markets could face further weakness before stabilising, as rising inflation, higher interest rates and a deficient monsoon threaten consumer demand and corporate earnings, according to a report by PL Capital.

The brokerage said a sharp, V-shaped market recovery appeared unlikely in the near term, with persistent foreign investor selling and geopolitical uncertainty adding to the pressure.

"We remain cautious on markets in the near term and don't expect a V-shaped recovery. We don't rule out markets heading lower before a consolidation," the report said.

The Nifty has declined 8.2 per cent over the past six weeks and 6 per cent since the beginning of 2026, making India one of the worst-performing major...