New Delhi, April 28 -- The Indian stock market witnessed a steady recovery in the month of April, with the benchmark Nifty 50 rebounding nearly 9% from the lows of April 2. The upmove in the domestic equities came despite persistent geopolitical uncertainty, as the US-Iran war remains unresolved and a reopening of the Strait of Hormuz continues to be delayed.

While analysts broadly remain optimistic about a potential US-Iran peace deal in the coming weeks - viewing the current volatility as transitory - Emkay Global has flagged emerging risks to the market's near-term trajectory.

The brokerage believes that stretched valuations, coupled with the possibility of a fuel price hike due to higher crude oil prices, could trigger a short-term ...