New Delhi, Sept. 14 -- BofA Securities has turned constructive on Indian equities after maintaining a cautious stance for nearly two years, forecasting a potential 12 per cent upside in the Nifty to 26,200 by December 2026 in its base case, as several market risks have either played out or been priced in.

The brokerage said five of the eight risks it had identified as drivers of market volatility have either materialised or been absorbed by markets. The remaining three risks could pose around 7 per cent downside to the Nifty in its bear case, although BofA expects some of these pressures to peak by October 2026.

Among the key risks, crude oil prices remain a concern after the recent market correction pushed prices above USD 100 a barrel...