New Delhi, May 1 -- The narrative for the Indian equity market is turning bearish, evidenced by the back-to-back downgrades by several global brokerages and the relentless selling by foreign portfolio investors as geopolitical tensions and crude oil prices above $100 threaten to dent India's macros.

The US-Iran war has effectively blocked the Strait of Hormuz, a critical chokepoint that accounts for 20% of the world's energy needs, driving up crude oil prices. Since the beginning of the year, Brent crude has nearly doubled to around $120 per barrel.

For India, which depends on imports for 85% of its energy needs, this is a significant blow. Global brokerages have taken cognisance of this development, prompting them to lower Nifty target...