New Delhi, March 22 -- Amid rising geopolitical tensions and volatile global cues, Indian equity markets are witnessing a sharp reality check, reshaping investor sentiment and valuation dynamics. The recent correction, particularly in mid- and small-cap stocks, reflects a broader shift in market positioning as investors reassess growth expectations in an increasingly uncertain environment. Market has not yet closely attempted to downgrade earnings forecast as it depends on the persistence of the conflict. While India which had been trading at a premium have come under deep pressure due to higher implications from West Asia conflict and FIIs sell-off strategy in India.

Sectoral trends further underline the complexity of the current enviro...