New Delhi, July 3 -- The Indian stock market remained under pressure during the first half of CY2026, underperforming several global peers amid record foreign portfolio outflows, earnings concerns, and a series of geopolitical and macroeconomic headwinds. The US-Iran conflict and the subsequent spike in crude oil prices further weighed on investor sentiment.

While fears of a prolonged oil shock and escalating tensions in the Middle East have eased, analysts believe the backdrop for Indian equities has turned more favourable.

Valuations have also become more attractive. The Nifty 50 index is currently trading at a 12-month forward price-to-earnings (P/E) ratio of 18.8x, around a 10% discount to its long-period average (LPA) of 21x. Its f...