New Delhi, June 13 -- Prolonged geopolitical uncertainty can add to sharp swings, but markets are unlikely to breach recent lows, Prabhudas Lilladher said, even as it trimmed its 12-month Nifty target to 26,449 from 27,080 earlier. The brokerage expects the West Asia conflict, crude spikes and supply-chain disruptions to test consumption and fiscal math from 2Q27, but sees selective themes like Private Banks, Defence, Renewables and Semiconductors outperforming.

"We believe that the full impact of higher daily essentials, EL Nino, rising inflation has the potential to curtail consumption demand from 2Q27," Prabhudas Lilladher said in its report on Friday. The firm flagged a potential Rs4-5 trillion incremental fiscal burden from higher s...