New Delhi, July 26 -- At the start of the year, India's equity outlook was clearer compared to last year, much more positive, with a decisive tilt toward large caps. The base-case Nifty 50 target for December 2026 was set at 29,150, valuing the index at a forward P/E of 20.5x. That optimism rested on three pillars. First, geopolitical risk was expected to recede between Russia-Ukraine and Israel-Hamas, and US tariff aggression was estimated to soften with Washington moving toward comprehensive trade deals. Second, India's valuations were seen falling below long-term EM averages, reducing the risk of further FII sell-offs. Third, domestic policy was turning supportive. The RBI had already delivered 125 bps of rate cuts in the 2025 easing c...