New Delhi, June 8 -- Indian equities entered FY27 on a relatively firm footing, supported by improving domestic demand, healthy March-quarter earnings, and record GST collections of Rs.2.43 lakh crore in April. The manufacturing PMI rose to 55.0 in May, while the top four automakers reported 25% year-on-year volume growth for the month, underscoring a still-supportive domestic backdrop. However, the macro environment has become more challenging.

The West Asia conflict, now in its fourth month, has had a deeper-than-expected impact on energy markets, with crude prices rising from an average of about $67-68 in FY26 to above $103 in recent months. This sharp increase has direct implications for India's total import bill, inflation, and corp...