New Delhi, July 15 -- PL Capital has turned more optimistic on Indian equities, raising its one-year target for the Nifty 50 to 27,019 from 26,449, citing improving macroeconomic conditions, resilient domestic demand and easing crude oil prices.

While the brokerage believes India's long-term growth story remains intact, it has cautioned that geopolitical tensions in West Asia, the possibility of a Super El Niño and inflationary pressures could inject volatility into markets and corporate earnings over the coming quarters.

The brokerage said the recent recovery in Indian equities has been supported by a combination of lower crude prices, a temporary ceasefire in West Asia and strong domestic economic activity. At the same time, it b...