New Delhi, April 3 -- A sharp escalation in the Middle East conflict has prompted a string of global brokerages to cut their outlook on Indian equities, with concerns rising over the impact of elevated crude oil prices on inflation, interest rates, economic growth and corporate earnings. Citi Research, Nomura, Goldman Sachs and Bernstein have all lowered their Nifty 50 targets, warning that a prolonged spell of high oil prices could trigger earnings downgrades and keep market sentiment under pressure.

Indian stock market benchmark index Nifty 50 has already lost over 10 % since the US-Iran war began.

The common thread across these calls is India's vulnerability to imported energy costs. Higher crude prices are seen as a key risk to corp...